If you are worried that a closed account will negatively affect your credit score, you shouldn't. There are a few general guidelines to keep in mind regarding how your score is calculated. First of all, 60 percent of your credit score is based on on-time payment history and the amount of credit you carry. The length of your credit history affects another 15 percent. My point is that paying on-time is by far a more important factor in determining your credit score than having an account closed. Additionally, an account that gets closed through inactivity can be re-opened by simply calling the creditor.
- I would like to replace a few high APR cards with better rate cards, but I know that we are supposed to limit how many cards that we have and closing them is a bad idea. What should I do?
- What happens when someone dies with credit card in their name and an authorized user continues to use credit card?
- Can you explain the difference between chip-and-pin and chip-and-signature?
- Are Discover Card credit cards any good?
- Which bank offers the best debit card?
- Is a credit score of 725 considered good?
- Why do you rate American Express credit requirements as "good credit" to secure a card? I thought to qualify for an American Express card you have to have excellent credit.
- Supposing you have a perfect credit score of 800 or better; which credit card offers the highest credit limits?