Would signing up credit cards affect the credit rating? What about cancelling them?

Question

I currently have one credit card that I pay off every month. It will expire in May next year.

This is a GM card, and I have no interest in earning GM points. I want to get another card for grocery points. Should I cancel the GM card or forget about it?

I am also going to get a professional student line of credit that comes with a credit card (that I don't need).

I'm not keen on keeping so many cards. Should I cancel the GM card and sign up for the groceries card? How would that impact on my credit rating?

Answer 1

Keep your GM card and simply use it every couple of months for a tank of gas or dinner and pay it off in full.

To have the best credit score and profile people actually need 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, boats, homes, computers, furniture or personal accounts (installment) all with good long pay history's.

And don't worry about how many credit cards you have that doe's not matter what doe's is how you manage them.

Good luck.

Answer 2

It would be beneficial for you to keep your GM card and go ahead and get the other card. Your credit score is based on but not limited to your credit history. So by canceling that card you are getting rid of your credit history. Being in the credit business for several year I recommend you keep the gm card open and keep a small balance on it ie 100 dollars just to keep that history going. Use your other card for the grocery points but buy a tank of gas and dinner with the other once a month and pay it off like you have been doing therefore keeping your oldest account alive. Even at 20% apr that is only 20 dollars a year (if unpaid that at is a small price to pay to keep your credit score and history going strong