Is it better for me to cancel credit cards with no balances on them, or keep them open? I currently have over 14k is available credit that I don't use. Thanks!
The answer to your question depends on several factors, such as whether or not you have used the accounts in the past, if you have a good payment history with the creditors, and how much available credit you currently have on the accounts. If you have used the cards and have maintained a good payment history with the creditors, you may want to keep the accounts open, as accounts with long positive payment histories have a beneficial influence on your credit score. However, if you have never used the accounts, thus never established a payment history, it is possible that the open accounts could be weighing down your credit score. Having too much available credit tends to make you look like more of a risk to lenders, as you could potentially put yourself in financial trouble in a very short time.
For more information about credit reports, credit scoring, and what they mean to you, I encourage you to visit the Bills.com Credit Resources page, available at http://www.bills.com/credit/.
I hope this information helps you Find. Learn. Save.