Archive for June, 2009
Does Cancellation Of a Credit Card Affect Credit Score?
For people who have good scores and who have cleared all their debts in a timely manner, should they think about cancelling a credit card? A credit score credit card is not good enough to tell that you are a responsible person. Nobody believes in plain talk. Instead, people need proof and hence, a credit card with good scores is good to represent your true and vital personality.
What about cancelling the credit cards?
For people who hold too many credit cards that bear processing charges and fees, but do not necessarily add credit value or real value, such cards can easily be cancelled. The cancellation of such a credit card will not have a negative effect on your credit score. Apart from this, even if you want o cancel a credit card to which you have subscribed only before few days, it will not create any problem as far as credit history is concerned. Less time between subscription and cancellation will not really affect your resultant credit history.
Make a Good Credit Report and Start Getting a Good Credit Score!
Both credit report and credit score play an equally important role in your financial dealings. Although closely related to each other, they have certain differences. It is really very important that you keep yourself aware of these differences because these two things are an inevitable part of your financial world.
The basic differences between credit report and credit score are:
1. Meaning
The credit report is a database of all your dealings which includes each and every task associated with your finances.
On the other hand, credit score is a numeric value derived from the credit report which actually indicates the risk factor associated with your finances. Credit score shows whether you are a creditworthy person or not.
2. Cost
Another small difference is that credit report doesn’t cost any money whereas credit score involves money.
3. Interdependence
Credit report has nothing to do with credit score, whereas credit score totally depends on the credit report information. If the credit report changes, the credit score will also automatically change.
Generally, credit report information contains the following details: