Credit Tips: Does Closing a Credit Card Reduce My Credit Score?

Posted On: March 16, 2007

Author: hithesh123
Posted: Fri Mar 16, 2007 2:07 pm
Post subject: canceling cards. Will it reduce my score?

I am trying to get rid of low limit cards since I got couple of new cards with higher limit and rewards.
So the question is, will it reduce my score?
Does canceling an old card result in more reduced score?

Author: bullwinkle29
Posted: Fri Mar 16, 2007 3:08 pm
Post subject:

leave them open, only close if they’ve annual fees attached to them. just use them every 6 months or so to buy a hamburger at your local mcdonlads.

Author: angelo21
Posted: Fri Mar 16, 2007 4:04 pm
Post subject: Re: canceling cards. Will it reduce my score?

hithesh123 wrote:
I am trying to get rid of low limit cards since I got couple of new cards with higher limit and rewards.
So the question is, will it reduce my score?
Does canceling an old card result in more reduced score?

Thanks.

These old cards are part of your credit history. Could hurt a little short term. However, as Bullwinkle says, if they don’t have an annual fee keep them open.

Also, have you requested a CLI with these cards?

Author: hithesh123
Posted: Fri Mar 16, 2007 8:59 pm
Post subject:

Thanks for the reply.

I haven’t requested for a CLI. The cards don’t have rewards or any perks. But the new cards do and I have made it a point to use the rewards card.

The thing is, BofA is canceling my card. It will expire this month. I just got a letter saying ” we review your account ….. blah blah and we cannot issue a new one bcoz of your past delinquency”
I had thought of canceling it. But now, they are doing it anyway.

I am getting 2 new cards this month, so my total credit line should go up. Does the Score go up with that?

Author: RacieRacer
Posted: Fri Mar 16, 2007 9:20 pm
Post subject:

Whether a score will go up or not when a new CC hits the report depends on each individual’s CR. There is no one set answer to that.

Depending on what’s on you’re report, the score could go up if one or some of your other cards had balances on them because it would help the utilization portion of the score.

It could go down due to lowering the overall age of accounts and & taking a hit in the ‘new credit’ section.

There are other variables as well.

Labels: Credit Sore Decline Due to The Close of a Credit Card, How Will a Closing a Credit Card Affect My Credit?