Credit question

ta78

My husband has great credit, in the mid 800s and for whatever reason he decided last week to cancel his only credit card. I guess he didn't like having the temptation to charge on it, instead of just putting it away he cancelled it w out discussing first. I am worried this is going to hurt his credit. It had a 10k limit and he had it for about 12 years I think. Does anyone know how much this will bring his score down? We are saving right now for a new home.. but maybe a few years out still.

Wulfgar

It will hurt you a little since this will become an old good credit on his credit report.  Also, in today's crazy world, they reward you for having a bunch of different types of debt.  When I bought my last car they had more issues with the fact that I didn't have a car loan for 5 years then anything else.  My credit score is in the mid to upper 700's.

Wulfgar

It will hurt you a little since this will become an old good credit on his credit report.  Also, in today's crazy world, they reward you for having a bunch of different types of debt.  When I bought my last car they had more issues with the fact that I didn't have a car loan for 5 years then anything else.  My credit score is in the mid to upper 700's.

tlc35

It will hurt you some because it decreases his available credit and therefore worsen his debt to credit ratio but probably not too much.

Sisugal

As long as you continue to pay your current bills on time, he will only have a small down tick. When you do need a loan of some kind - use your credit union rather than a bank as they will use alternative scoring.

 

Wulfgar - you do NOT need current loans - that no car loan for  5 years is bunk - total car sales pitch.  My score is in the 800s - our home has had no mortgage for about 4 years now, no car loans for 15 years (we pay cash) and I use one store card rarely .  We do put everything on one Visa Rewards card and pay it in full each month.

hoffse

Sisugal said:

As long as you continue to pay your current bills on time, he will only have a small down tick. When you do need a loan of some kind - use your credit union rather than a bank as they will use alternative scoring.

 

Wulfgar - you do NOT need current loans - that no car loan for  5 years is bunk - total car sales pitch.  My score is in the 800s - our home has had no mortgage for about 4 years now, no car loans for 15 years (we pay cash) and I use one store card rarely .  We do put everything on one Visa Rewards card and pay it in full each month.

This.  

OP, credit cards help you establish credit and improve bad credit (assuming you pay them off in full each month).  Your H's credit is great.  There will be a small downtick for a few months but then it should recover.  I do think having one credit card open that you use a couple times a year is important - just so you always have a "current" history - but you don't have to have debt for this to improve your score.