I have a credit card with a $10,000 credit limit and no balance. Does it

[Browneyz D]

help or hurt my credit, if not using? I just want to know if I should close the account, if I don't plan on using the card that often? Want to improve my credit score.

[dougjmcfarlane@yahoo.ca]

Well, let's face it. To get a credit card with a 10K limit means either you have a very good credit rating or a very good credit card co-signer, i.e., sponsor. So, having an unused credit card will not hurt your credit in and of itself.

However, some credit card companies are now actually punishing people who have their credit cards, but are not using them. They do this by recalling the credit card, and then cancelling them.

Why? Because credit card companies only make money when the card is used. If it is not used, then they cannot charge you the service fees. So, if you do not use it, as far as they are concerned in ever increasing numbers, then, you should lose it.

Note: if you have a sponsor, who also has a credit card, the credit card companies will usually not remove your card for fear of losing an active card-holder to whom they are able to charge service fees.

Okay, now more directly to your question: can it hurt your credit if your card is unused? Not really. But, other companies might not want to give you a credit card if they think you will not use it.

Is this the same as bad credit? Not hardly. The person with bad credit cannot even get a bank loan. Obviously, you will be able to, especially since you were already approved for a 10k credit card balance. Don't worry about this too, too much. In the end, what one credit card company will not do for you, another will.

[johnnomads]

Congratulations! You no doubt have an excellent credit score, if you have an card with a $10,000 limit. If your sure that your not going to use the card, then close the account, and save any cardholder fees, etc.