credit question
Thread Starter
k three ifers
Joined: Jun 2002
Posts: 42,568
Likes: 4
From: Buffalo, NY
You seemed settled in already, do you need an optimum credit score? Keeping an account open or closing it isnt going to make or break you. I would just leave it :dunno:
---------- Post added at 09:56 PM ---------- Previous post was at 09:54 PM ----------
It is never that simple...
But part of your credit score is determined by the amount of debt you have and the amount of credit you have available to yourself. Closing that account will lower the amount of credit he has available, but increasing the ratio of debt to credit. Like I said, closing a furniture store credit line isnt going to make or break anything.
---------- Post added at 09:56 PM ---------- Previous post was at 09:54 PM ----------
It is never that simple...
But part of your credit score is determined by the amount of debt you have and the amount of credit you have available to yourself. Closing that account will lower the amount of credit he has available, but increasing the ratio of debt to credit. Like I said, closing a furniture store credit line isnt going to make or break anything.
i paid off everything i had in debt last week except a $1,000 visa bill and $6,000ish in student loans that i have left.
and of course... the house.
your example of amount of debt vs. available credit is good, i never thought about it like that, i really don't know anything about it.
I got worms.
Joined: Jul 2000
Posts: 32,238
Likes: 0
From: Utah
That number (debt vs available) is utilization. The general rule is the lower your utilization, the better.
I would think that this line of credit would be treated as a revolving line of credit, similar to a credit card.
It should not have a negative effect on your credit score in leaving it open. However, if they were to close it, it would increase your utilization suddenly.
I would think that this line of credit would be treated as a revolving line of credit, similar to a credit card.
It should not have a negative effect on your credit score in leaving it open. However, if they were to close it, it would increase your utilization suddenly.
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Joined: Jan 2005
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From: teh az
It depends on how it reports if its revolving and if it even reports to all the credit repositories (experian, transunion, and equifax). Some store credit lines will only report to one because it costs them to report. Debt to available credit is only really effects you when you are over 75%-80% the debt to income is far more important.