Does canceling a credit card increase your credit rating??

I agree with ablex, J-Kitch, and Matt. This is what makes up your score:

1. Payment history- 35%

2. Total debt owed to available credit ratio-30%

3. Length of time establishing credit-15%

4. Types of credit established-10%

5. Inquiries and New accounts-10%

By cancelling the card, you directly affect factors, 1,2, & 3 which shortens the overall payment history, ratio of credit used to available credit, and the average age of accounts which can give the appearance that you're not as experienced with credit. Simply make SMALL purchases ($20/month) and pay it off on time every month just to show activity.

Also, another thing to keep in mind is that the 0% is more than likely an introductory rate for a short period of time, and then will raise to something much higher later on. Also, you could use the other account as leverage for BOA to get a more competitive rate.

So you have your answer: keep it open

It depends actually. It will help you if you have a lot of cards and you're just closing some of them down but it may decrease your rating if the card you're closing has a long credit history. I would suggest to call BofA first and try to negotiate the 24% APR. Do you have a balance? Because if you pay it off in full every month, then the APR will not affect you anyway. Also, 0% is fantastic but that is just an introductory rate, I would first find out what the rate goes up to once the introductory period is over.

If you pay off the balance in full each month, then the interest rate won't come in to play. I recommend leaving the account open (unless there are annual fees and you can't get them waived). You can charge small ticket items to it, and pay the balance off in full each month. Also, if you keep the balance on the card at 9% or below of the available credit limit that is the fastest way to improve your FICO credit score.

It won't damage you credit to cancel it. But it always helps having a good amount of "unused" credit open. I do the same thing, I keep a card with a decent limit that I don't use.

you should take a close look at the credit card offer with no interest ... something is not right there ... how would this company make money ... the no interest is usually for a short term deal . then you get the interest rate

I've closed down credit cards and it hasn't affcted my credit. just be sure it's completely paid off .and you'll be fine .

Not an expert but with the way of credit ratings, I doubt it very much. I understand your personal logic but it doesn't translate into the evil world of credit cards.

Leave it open. The amount of available credit and the length of your credit history are important factors of your credit score. Closing older accounts reduces both.

Cancelling is bad.. But that other 0% one is likely only 0% for the first few months.. read the fine print.

ablex is right on! Even if you don't use your cards, just keep them in a drawer or use them for emergencies only or whatever. Just make sure you still pay attention to your statements so that you can be aware of any unauthorized charges.

It depends on how many cards you have. They want too see some on your credit and they want too see high limits, not a lot of small limits.