Personal Finance

Is it bad to cancel first credit card 2 years before a mortgage?

  • Last Updated:
  • Mar 2nd, 2014 6:12 pm
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Deal Expert
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Aug 18, 2005
18833 posts
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GTA West
Pro wrote:
Mar 2nd, 2014 9:38 am
I'm a little confused. Is it better to actually carry a bit of a balance (not paying off the balance before grace period) then pay it off after you receive your paper statement?
I use my CC but I pay it off in full every month before I even get the statement. I take advantage of paying it off within the grace period so I don't have to pay any interest. Is that a good way to slowly increase credit score?
Carrying a balance might be better for your credit score, but it is not better for your life.
Deal Fanatic
Apr 16, 2007
7204 posts
2154 upvotes
Financial District B…
Pro wrote:
Mar 2nd, 2014 9:38 am
I'm a little confused. Is it better to actually carry a bit of a balance (not paying off the balance before grace period) then pay it off after you receive your paper statement?
I use my CC but I pay it off in full every month before I even get the statement. I take advantage of paying it off within the grace period so I don't have to pay any interest. Is that a good way to slowly increase credit score?

Sorry for the threadjack.
Carrying a 'reported' balance, not carrying a 'non-reported' balance really doesn't matter a whole lot.
When applying for future credit if your CC shows no evidence of usage it will be difficult to gauge if you're a good risk or poor risk. While the main consumer credit score gives us a overall report-card like value of your credit stance we are sometimes more concerned with our own behavioural payment profiles that are generated alongside your bureau.

This is not to say you have to alter your habit of paying off your card prior to statement date which is usually same as FI's reporting date(excluding mid-cycle reporters)
One can perform payment once after known reporting date to establish high credit usage(*hint) then continue to do your usual thereafter.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again

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