Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
EJCN4

1 Contribution
0 People Helped
Closing 2 year old credit card used to establish credit
Card had a low balance since it was used to re-establish credit. Credit score is now much higher and I'm thinking about obtaining a card with a better rate and higher limit. Also, I had a late payment on the old card. Wonder if it would benefit or hurt my score drastically. Any thoughts.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
269 Contributions
114 People Helped

Closing the account won't make that late payment go away--it will still be there until the account itself falls off completely years from now. Closing it won't affect the age of your accounts any since closed accounts are factored in as well as open ones, but I would keep it open for two reasons: It increases your available credit and therefore probably decreases your utilization, and if you're working on reestablishing credit you need to have a decent number of open trade lines in good standing. It doesn't have to be your main card if you don't have much use for it, but do keep it open and use it occasionally, at least for now. 

Reply by
EJCN4

1 Contribution
0 People Helped

Thank you. I now qualify for credit cards with much better rates as my score is now above 690. Would you suggest I apply for a new credit card which would most likely provide a higher credit balance?

Top Contributor
5038 Contributions
1131 People Helped

Don't close the card and yes try to get another one. Check the "preapprovals" on credit card websites, some are accurate and some are not. Do some research on which ones are accurate. Capital One, Chase, AMEX all have pretty accurate preapprovals.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.