How does closing a credit card account affect credit score?

I want to close a credit card account but I'm going to reapply to the same one (long story, don't ask. it's actually a must. NOT important)





But I have pretty good credit and it's mostly from the credit card that I'm wanting to close (and eventually reapplying).





Will closing my major credit card have a negative affect on my credit score?|||Your payment history is only 35% of your Fico score, lenght of history is 15% and amonts owed is 30%





So if you close an older account and add a new account the new account will not be rated as a good account untill its open for over 6 months (falls under new credit 10% of your score)





You also will loose a older account that helps your score. If your reapplying to the same company, try to keep the same account and request they change the terms to fit your needs. Tell them if they are not willing to work with you your going to cansel the card.|||Thanks!





Will it help if I keep the account until I have a 6+ months credit history (with new credit card account) to close it?

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|||Yes, for some strange reason closing an account actually lowers your credit score. It's best to keep it open and just don't use it. Instead of reapplying, open another. I have had 2 accounts with Chase for years.|||I just checked my credit yesterday, and was reading up on the basics. Assuming that I understood correctly, the two most important points are:


1) It's important that the credit report notes that YOU closed the account (as opposed to the account being closed out by the creditor due to a problem).


2) Your average open credit history is relatively long, which is a factor in your overall credit score. It would be bad to close all your cards and open new ones, as your open credit history would be short. If you have other cards with a longer history, it shouldn't be a problem to close one account and open a new one.





Good luck!|||Companies way your credit history and revolving credit. Closing one and opening up another (albeit the same) may bring your score down (although probably temporarily). Depending on how many cards you have and overall credit limits and balances and income. There is a magic formula but I'll be damned if I know what it is. If you have other cards that you've had for a while than your score shouldn't suffer too much. If this is your only one than who knows.


Sorry it's not much help. If you have decent credit and continue to be good than any ill effects will probably not have to much long term holding power. Atleast that's what I think for all that's worth :-)


Good luck|||Yes, closing a credit card will hurt your credit, since you will no longer have the benefit of that available established credit history.





However, since it is "a must" that you are going to close it, it doesn't really matter what the effect will be, so don't second guess yourself to death. BTW, it will be minimal, especially over the long run.

What is the best travel rewards credit card?

I am your regular college student who is looking for a credit card that in four years will give me a pretty nice discount or free flight to someplace far and exciting. What credit card has the best rewards for this?|||I'm a cost analyst and have done extrensive reserach on this.





You are always better off with a 1% cash back card - and putting the money into a savings account.


ALWAYS.


These cards are full of tricks. Such as making it hard to make the reservations for the dates you want - they even overcharge compared to what you can get in travelocity.





So forget rewards - go for the cash back.


And never carry balances - this only destroys credit - pay in full each month.


/

Is it illegal to copy a credit card on a copier?

Today at work our credit card machine stopped printing so we took a card, made a copy and wrote out a reciept. The card holder got completely bent out of shape and demanded the copy of his card back saying copying it is illegal. I thought it'd be OK because even a business owner's reciept will have the card # on it. Does anyone know if it's illegal to make a copy of a credit card?|||Hi. I worked tech support for a major CC processor for about 2 years, so I've had to advise many merchants of this very issue.


When a credit card machine is out of order for whatever reason, it is not only legal but advisable to get an impression of the card. A photo copy is not good enough, by the way. To cover yourself for liability, you need an actual physical impression of the card as proof that it was handed to you. It's best to have a manual imprinter on hand, but even laying a piece of paper over the card and using the side of a pencil or a crayon to obtain the impression is ok.


Also-make sure you are calling your CC processor's voice authorization line to get a valid autho of the card, otherwise you might get a decline later. Have the customer sign a receipt for you, showing the card number, the exp date and the authorization number so there's no mistake down the road that the customer authorized use of the card.


Getting the authorization number into a working CC machine differs from machine to machine, sometimes labeled "Offline", or "Post-Auth". Have your CC processor's customer service walk you through that if you are unsure.|||I don/t know about it. Go to: http://www.credit-card-gallery.com/artic鈥?/a> and get all information about credit card.|||no, that is how they use to do it before we had computers to store the information. Now a days we use the computer to write down all the information for us. When you swipe the card through the computer all of your credit card information is printed out a slip with all you credit card information on it (the merchant copy) and they save it, so it is basically the same thing, except one looks like a card.|||It is perfectly alright to photocopy credit cards given your current scenario; breakdown of machine. You may even want to take a step further by having the customers signed on the photocopies of the credit card to confirmed the transaction. This is also to protect you and your company should the customer turned-around and denied the transaction.|||Don't know but probably not. Nothing on there but the numbers, right?|||I don't know that it's illegal, but I would have demanded my copy back too...too many thieves these days...bad business practice...|||No it is perfectly legal to do that. It is no different than taking an Imprint of the card. As long as you did not put the entire number on THEIR receipt you were okay.

How to use my credit card wisely?

I'm 18, and interested in getting my first credit card. I want to build up my credit which, I don't think will be a problem because I'm really good at paying bills on time. What are some good tips as well as do's and don'ts when I get my first credit card? What should I be aware of? What would be helpful to avoid?|||Don't get a credit card that charges fees and don't get a store credit card. You should only charge what you can pay off completely before interest kicks in but if you have a store credit card and are late on a payment you could be paying 30% interest.





Ask for a low limit, one that is only about half your monthly income. Ask the company to not raise you limit unless you authorize it.





DON'T shop online when you've been drinking and always leave your credit card at home if you're going to a bar or a casino.





Always remember that once you get yourself into debt it's very difficult and expensive to get out of it.





Learn as much as you can about credit card fraud to make sure you're never a victim. Sign the back of your card, don't use it any where shady and keep a photocopy of it at home incase it's ever stolen so you can have all the info to cancel it quickly.|||Only buy things that you really need. Only use what you can pay off. If you can't, you will find yourself in trouble you dont want.|||A checkbook would be better.|||.Look for a card that has no Annual fees.


It is also good to get your card through a local Bank.


If there is any problems you will be able to go in and talk to someone.


Never put anything on the card that you will not be able to payoff at the billing cycle.This way you pay No Interest.


When the bill comes in Pay it Immediately.


If you wait it is oh so easy to forget, and be past the due date|||Get a debit card instead. It'll do anything a credit card can do except get you in debt..


Don't play the credit card game. They make all the rules and can change the rules in the middle of the game. If you play the credit card game. Sooner or later you will get behind and start losing. Once you start losing at the credit card game. It's hard to get out of the game. High interest rates that they can raise for any reason. Outrageous late fee and over the limit fees. Not to mention Identity theft.





Pay as you go and live on less than you make and you will have money. If you have money you dont need to borrow money. If you dont borrow money you don't need to worship at the alter of the almighty fico score.





Debt free is the way to be!|||If you can't pay it off in 2 months, do not buy it. never by because it's "on sale".|||Be aware that you are much more likely to buy things that you either don't need or can't afford.





If you can't pay the balance off at the end of the month, then you can't afford it. There is no virtue in needlessly paying credit card interest.





if you really want to / have to have it, then use it to buy gasoline and that is it unless you are out of town and in an emergency.

How to bring your credit score up through credit card purchases?

I just got a credit card recently, and I thought I knew how to bring my credit up. I figured that if I paid my bill every month, that was really good and you would jump in the ratings. My mom says you should keep a little bit of a balance, and that looks better. That would mean I'd pay the interest rate. Why should I have to pay the credit card company to bring up my credit score? Is this right, and why does it work out like this?|||As the old expression goes "listen to your mother"!





If you pay off your credit card balances every month, it could cause a negative effect on your credit score. Suppose that you use your credit card to purchase pay utilities, phone, gas, groceries, and everything else each month, always spending around $1,250 each month. When the bill arrives, you pay the balance in full, now you would think you would get bonus points for staying out of debt and paying off the balance in full each month, but not when you consider how you look on paper. What is your credit card issuer reporting to your credit report each month -- the total amount you owe at the time of the report and that you pay on time, not the fact that you pay your balance in full each month. Therefore, on paper, it looks like you carry a $1,250 balance on your credit card and never pay it off. Therefore, a good idea would be to have 2 or 3 credit cards and rotate them, using one for a few months, then using another, so that your credit card company can report a zero balance every few months to the three credit reporting agencies.





Another FICO rule is to not exceed 30% of your total avaialble credit. EXAMPLE: You have 3 cards, they total $3,000 in available credit, never charge more then $900. It will raise your score the lower your ratio of debt to available credit is.





Pay your bills on time. Delinquent payments and collections negatively impact your score.


Keep balances low on credit cards and other "revolving credit." High outstanding debt lowers your credit score.


Apply for and open new credit accounts only as needed. Don't open an account just to have a better credit mix; it probably won't raise your score.


Pay off debt instead of moving it around. Owing the same amount, but having fewer open accounts may lower your score.








Hope this has been of help to you.|||I'm assuming you're new in the credit world and your credit card has a low credit limit, correct me if i'm wrong though.





if your card has a credit limit of like $500, you need to be extra cautious because even charging a $300 purchase on your card could result in losing some points, it all depends on paying your bill off or most of it before a really high balance is reported to the agencies... it's like you owed $300, and even if you paid it as soon you could and made the balance $0, if the $300 balance was already reported to the bureau, the full payment you made soon after will not really help your score because as far the bureau's are concerned you're still carrying a $300 balance as of when it was reported, if it gets paid off after they don't really care.





my suggestion would be to make it simple, don't use your card more then 30% of it's credit limit, and if you can try to pay it off in full right before you receive the statement, or try to make a minimum payment higher than that of what appears on your statement, so if you owe $20 in minimum payment, try to pay a little more to show the bank of your financial ability to repay higher than what they asked.





hope this helps. |||My mom told me the same thing and she wound up in $30,000 of credit card debt and was broke.





I learned about credit through reliable sources and a credit card is just a short term loan to be paid in full each month. People who pay their cards each month have the highest credit scores (over 800). If you don't have the money to pay in cash at the bank, then you can't charge the purchase to the credit card.|||Paying your whole balance off looks great on your credit. Just be sure to keep at least on card open and charge something ( even if its a pack of gum) evy now and then so that it stays active. One thing that will raise your credit score is having an account for a long time. |||You can better try this to get some useful links. It will help you a lot as it helped me.


http://personal-loan-info.freehostia.com/


All the best...

How do I categorize a credit card payment on my business taxes?

If I charge $1000 on a business credit card for my LLC, and I make a payment of $200 for a monthly payment and $150 goes toward the balance and $50 goes toward interest, how do I categorize the credit card payment?





Do I claim the $1000 that I spent and also claim each payment I make on the credit card?|||When you make the purchase you debit the appropriate expense or asset account for $1,000 and credit current liabilities. As you make payments, you debit current liabilities for the principal portion of the payment, debit interest expense for the interest portion, and credit cash for the amount of the payment.





If this is all Greek to you, consider a consultation with a CPA or EA who specializes in small business accounting and taxation to get set up on a bookkeeping system.|||I wouldt treat the $1,000 charge as an expenditure. Create a loan in the amount of $1,000. Reduce the loan balance by $150 per payment and create an "interest expense" of $50 per payment.

What is the best solution for credit card debt?

What is the best solution for credit card debt?


I am way in over my head, I have 6 credit cards and I'm over $40,000 in debt. I have tried to take out a loan at the bank to consolidate but i got turned down. I need HELP!|||You have heard it before. Pay minimum on all your cards. Take the smallest amount you ouh on one and double or triple the payment. When it is payed off cancel that credit card. Then take on the next in line. Put the money you were paying on the one you just paid off and apply it plus the payment you were making on that card. The hard part is the first card, after that it begins to gain speed. The main thing is not to use the cards any more, leave them at home. If you do not have them you can not use them. And to cancel them as soon as you make that last payment.|||Most likely there are two ways to consolidate your credit card debts. One of the way is Credit Card Consolidation Loan, which is a type of unsecured personal loan. When you have several credit card debts, you can consolidate it into one lower, fixed rate loan. You make a single lump sum payment each month to your credit counselor and he in turn will pay off to your current creditors. The advantage is that it will improve your credit score as the subsequent payment are made to new loan. But its not advisable when your credit score is not so good as it will get you higher interest rate and you would be in more debts.





Another way is credit card debt settlement plan wherein a debt settlement company would negotiate a lower lump sum payment to pay to your Credit Card Companies and as a result you end up paying fifty percent or even sometimes lower, of your outstanding balance to them.





As per my knowledge, debt settlement would be good.





Here is the source of a debt consolidation company http://ezconsolidation.com for your reference. They can give you better advice.|||You have credit card debt, and you wan to pay it off as quickly as you can. We will assume that you are going to stop creating more debt. You have changed your ways. You also understand that paying credit card balances with a consolidation loan or rolling it into a mortgage isn't paying it off. In fact, paying a lower interest rate, but paying on the debt for many more years, usually means paying much more, not less.Okay, so you really want to be rid of that credit card debt.





http://credit-cards.awardspace.com/





First, you have to understand that not all debt is the same. Of course you know this. Some of your cards have a higher interest rate than others.Find and budget the money to start paying down those balances. If you order pizza every week, for example, you may be spending $60 or $80 per month right there If you are serious about getting those debts paid, you may have to eat $4 frozen pizzas for now. Do what you have to do, and determine how much you can apply towards the debt each month.|||To be honest a loan isn't your answer. Why would you consider taking on debt to pay off debt??? What you need is a plan. Your debts aren't going to go away on their own so it's important to own up to what you owe and who you owe. Might I suggest a trip to the library to take out books by Dave Ramsey. His plan works ... it's not a scam. It's a way out of debt. He's a little sarcastic but he's truthful. Get rid of things you don't need in your home and in your budget. Take on a second job. Clip coupons. Stop using your credit cards... don't cancel them but don't use them either. You didn't go into debt overnight so you won't get out overnight either. Believe in yourself. The goal is debt free not living in refinanceville. Be smart and be strong. Tackle that debt one dollar and one day at a time. The rest will fall into place.|||There's a good article at eHow on steps to take to begin tackling your debt. Take a look at it:





http://www.ehow.com/how_2326032_avoid-es鈥?/a>


How to Stop Escalating Debt





It includes information on companies (both non-profit and for-profit) that can help you with debt consolidation and reduction.





You can also look here for tips on earning some extra cash online:





http://www.ehow.com/how_2254361_money-in鈥?/a>


How to make money on the internet, scam-free





Lastly, here's an interesting alternative to conventional lending...getting a "social networking" loan from Virgin Money (from the same folks who run Virgin Airlines):





http://www.ehow.com/how_2310995_student-鈥?/a>


Social Loans from Virgin Money





Hope these help.|||I was in a situation not unlike yours, I owe about $20,000. After getting screwed from Fresh Start America, (they took $1500 from my checking account, and paid NOTHING) I got involved with greenpath. They contact the companies you have debt with, and work to keep or make your accounts current. You will have to work out a budget with them, but they can help, and they have debit counselors that you can talk to if anything comes up. They have been accredited by the BBB, and some other good certifications. Check out the website...|||Hi Twin father.





I actually own a debt settlement credit company called AG Debt consultation We do what Shannon above is referring too and we are quite successful at it. If you would like some free advice or for me to look a little more into your situation go ahead and give me an email.





My email is agdconsult@gmail.com





I am Aaron|||I bought Kevin Trudeau's book Debt Cures, and was disappointed, then found this website and there info was a lot more helpful and concise, without any fluff or any of the bull Trudeau's book had. Check it, if you want, I think it'll help: http://www.TheTruthAboutDebtCures.com|||Hi,


I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:


http://memurl.com/furetu|||your best option is debt settlement this will cut your debt up to 70% and give you some room to breath and make smaller payments, check out www.creditservicesolutions.com they will give you a free analysis.|||STOP! just stop and take a breath. put them in the garbage!!! throw them AWAY!! thast the only way it will get better. OR stop spending it !!! get a few jobs to pay it all off|||http://www.ehow.com/how_2291420_pay-down鈥?/a>