Is having credit cards with no balance good for your credit score?

jessica732528

Hi everyone, pls can someone advise. We have old credit cards with 0 balance. (from balance transferring) My questions are : 'do they automatically close accounts which havent been used in a while?' ALSO 'if they are still 'active' does this go AGAINST you or FOR you when applying for credit?'
How do you close a credit card account - by writing them a letter?
Can we see which credit cards we have by looking at experian for example? Also, if you use a credit report, does this act as an application for credit?

We are trying feverishly to clear all credit and currently have one with all our balance on. My husband has always had excellent score but have had two late payments recently, will these count very adversely when we apply ?

Thanks so much!
Jessica

CLAPTON

some will close a/cs if you dont use them and some won't

having too many dormant CC with high credit limits may go against you a little

you can see your CC on your credit files

no, applying for you credit files isn't counted as a credit search

late payments are usually recorded on your report but probably wont go against you but in the current climate who knows

Moggles_2

Originally Posted by jessica732528
We have old credit cards with 0 balance.... If they are still 'active' does this go AGAINST you when applying for credit?

Depends how many cards you have. If you take no action, the unused cards show on your credit file as available credit, even when statements have ceased and the cards have expired.

Depending on your income, this could reduce your chances of acceptance by other card companies and affect the credit limit you're likely to be offered.

Moggles_2

How do you close a credit card account - by writing them a letter?

A phone call to customer services should be all that's required, but ask your provider to confirm closure in writing. Most lenders do not ask you to return the card. It's advisable to check your credit reports afterwards to make sure the a/c is closed down and marked "settled"

The whole process (from the initial phone call ) can sometimes span a couple of months, so allow plenty of time. Once settled, the account stays on your credit file for 6 years and tells potential lenders that you handle credit well