When you cancel or close a credit card with a balance you'll still be billed and have to pay for the money owed on the credit card.
If you fail to make those payments then your credit score will go down but if you pay the money owed on the closed credit card then your credit will not be affected and can increase.
You won't be forced to pay the balance on the closed account right away, but you must continue making at least the minimum payment due each billing period.
Closing a credit card can sometimes hurt your credit but not always.
As long as you pay down or pay off the balanced owed on your credit card before closing it or as long as you continue to pay off the closed credit card then it should not affect your credit.
In general, it's best to keep unused credit cards open so that you benefit from a longer average credit history and a larger amount of available credit.
Credit scoring models reward you for having long-standing credit accounts, and for using only a small portion of your credit limit.
You can buy a house and get a mortgage with a 622 credit score as long as you meet the other requirements such as income requirements for the mortgage.
A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.
The credit score that can prevent you from getting a job is around 600 or less.
You still may be able to get some types of jobs with bad credit but jobs in finance etc you may not get hired due to the bad credit.
If you are seeking employment, your credit history may be checked and you can be denied employment because of bad credit.
Prior to applying for a position, it's a good idea to speak to the prospective employer.
You have a right to know if your credit will be checked.
A great credit score is 800 and up while a good credit score is around 670 to 739.
The higher your credit score the easier it will be to get loans, credit cards, better insurance rates etc.
Although credit score ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
A credit score of between 670 to 739 is considered to be a good credit score.
Below 680 is considered an average credit score and 300 or less is considered a bad credit score.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
The Visa debit card does not build credit.
Although the Visa Debit card is a good way to use money from your bank account and spend it with a debit card.
The extra debit card does build your credit as you use it.
There's no credit check to get the Extra Debit card and as you use the Extra Debit Card it helps to build your credit so that you can get approved for loans, auto loans, credit cards etc.
Extra is the first debit card that builds credit and earns rewards points just like a credit card.
The Extra card is best if you want to try to rehabilitate your credit score without worrying about adding on to your debt or getting a credit check during the sign up process.
This type of credit card works similarly to a debit card in that you only have access to the money you put into it.
You can also use a secured credit card to help you build credit.
With a secured credit card you put up a deposit for the credit card balance and then the deposit becomes your credit limit.
You then use the secured credit card like a normal credit card and then pay the bills and as you pay back the credit card your credit gets built up.