Quote:
Originally Posted by upstatedoc
It's been my understanding that the more credit cards you have the lower your credit score will be because of the potential debt is greater. I don't see how canceling a cc will lower your score?
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My understanding is quite the opposite. I used to always cancel unused cards. Now my available credit has to be almost 200k. I routinely charge about $3k/mo., and pay it off and carry no balance. My score was pretty good when I refinanced.
The idea is that say you have a $30k credit card, that has a $0 balance, and has been in good standing for 84 mos. When you cancel it, you lose 84 mos. of positive feedback, and your score goes down.
Nobody can verify 100% that the above is true, it is what I've heard.