Unused, 3rd credit card on credit report--Does this affect me?

Question

When I was making plans to go to college, I decided to obtain a credit card. I heard two was safe, so I applied for two student cards from Citi. Everything went through, and I got my cards, but I decided to only keep one and not activate the other. I cut up the other one and disposed of it. Fast forward three years later (now), I have since applied and accepted what I thought was my '2nd' Citi card. I have been using both, and never made late payments.

Out of curiosity I finally checked my free annual credit report. I notice I have 4 accounts in good standing...And I was kind of concerned. 2 accts are the CCs I've been using as stated, 1 is for my federal student loans, and the other is that card I never activated.

I heard that having 3 CCs could hurt credit, and I know I should cancel my unused card officially. I haven't checked my actual credit score but I'm worried that this 3rd card affects me. Can someone clarify this for me please?

Answer 1

Officially close out the ones you are not using. I doubt your rating is in dire low score with your payment history. However, it the "access" to credit you have, example, your income is $25K a year, you have 3 credit cards, with extended line of credit, of $2500,$2500 and $5000. As a previous loan officer, you are considered, even with a 0 balance, that you can quickly rack up $10,000 in unsecured debt. Debt/Income ratio plays a big difference in deciding factors for bigger purchases, car, house, and knowing you can tack on an extra $10 grand will be considered, even though you have no balance now.

Answer 2

Yes, it can negatively affect your credit score.  The open line of credit represents debt to potential lenders because in their mind, you could go max out the card at any time.  For this reason, you need to cancel it or it will be factored into your debt to income ratio if you apply for credit.

Answer 3

Keep the credit card and don't close it, just continue to pay on time for your credit cards.

Answer 4

Just keep whatever credit card you have and don't apply for more cause canceling could hurt your credit little bit as well.

Answer 5

No, keep the card and dont use it. Part of your credit score is based on the ratio of avail credit vs balance that you currently owe. Actually if you had 10 unused credit cards it would increase your credit score more.

Answer 6

Do not close it.

Just take credit and pay it in time, and your credit score will be set. To avoid common mistakes while buiding credit, I recommend this one - http://creditreport.imess.net - to monitor changes in you score and pre-estimate future scores for different scenarios of payments.

Answer 7

it does, but very little. keep it current and it'll only take off like 1 pt.