Help Credit Debt

Question – Is it bad for my credit when my credit card issuer cancels my credit cards?

Answer -  Yes, your credit score decreases when a credit card is cancelled. This hurts when you are trying to build a credit. However, this can be just temporary, as your score should be able to increase in a short period of time.

Question – Does having a charge card such as the American Express Gold Card hurt or benefit your credit score?

Answer – Having a credit as opposed to a credit card used to hurt your credit score, because credit reporting beaurus assume you are charging up to your credit limit everytime. However, the latest FICO scoring system allow for better understanding of the charge card. Since charge card normally do not have credit limits, the FICO scoring system do not factor in how much you charge each month.

Of course, if you become deliquent, it will definitely hurt your credit score.