Credit Debt

How do I switch credit cards and not affect my credit score?

I want to get a frequent flyer credit card but I already have 3 credit cards with generous limits. I don't need these credit cards and I would like to cancel them and have this "possible credit" to go towards the new card. I heard once that canceling a credit card has a negitive effect on your credit score. Is this true? If so, how do I switch credit cards and avoid affecting my credit score in a bad way?

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Does paying off your car loan early help your credit?

The simple answer is no there is really no advantage to your credit score by paying off an installment loan, a car loan, early. Installment loans are contract that details the amount of money borrowed and the terms of the loan agreement, which is a monthly payment promise over a specific period of time. Auto loans are typically 24-72 mos. Lenders are primarily concerned to see if borrowers understand this [ad]concept and continue to pay their monthly payments on time, over the length of the contract. Therefore, you receive no “credit” for paying early. In fact, this demonstrates that you don’t understand the contract that you signed. You will be penalized for paying late or not paying at all.

Many automobile loans can have, like mortgages,compounded interest terms but are not typical. In this case paying off your auto loan early may save you some money in interest it will not affect your credit score. Read your loan documents carefully to see if this applies to your case. It is advisable to make your regularly scheduled car payment and save the money to apply toward something else. This is a much better use of funds. Most car loans are for set amounts of money and that will always be the payoff, no matter when you pay if off. If you have this ordinary type of auto loan, make the payments monthly, since this is what you agreed to do.

Applying for credit shortly after a major purchase can have an adverse affect. If you are denied credit due to the large amount of the new loan, this will lower your credit score.

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Does cancelling out my $0 balance credit cards help out my FICO score?

I have a few cards with no balances on them. Do the agencies lower my score because of these ? Like, because i have the potential to use them?
Wow, thank you all – so far it's unanimous and I was totally wrong ! LOL. I'll keep them active, and not use them often – thanks again !

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