Does closing out credit card accounts lower my credit score?

Question

I would like to close out several of my open credit card accounts that are never used. Is this going to lower my credit score? Should I space them out, i.e. one per month or so? The more info you can provide to me, the better. Thanks so much!!

In particular, how would closing out store credit cards (ex, Sears, JCPenney, etc.) affect my credit score?

Answer 1

Yes Closing out open credit cards will lower your score. It's all based on Credit Utilization, i.e. what percentage of your open credit lines are you currently using. FICO credit scoring adds up all your balances and all your credit lines to determine part of your credit score. The best is to have zero utilized but up to 25% is OK. If your utilization is higher than 25% it will definitely lower your score.

I would look at your whole revolving debt picture before closing any accounts. Put the cards away in a safe place and don't use them for 6 months and then decide if you still want to close those accounts.

Good Luck

Answer 2

Closing your oldest credit card could impact your credit score when it comes to credit age (15% of the credit score). But not until that account drops off your credit report after about Ten years or so.

Answer 3

I guess it depends on how the rest of your credit is. I paid off both of my credit cards that I'd had for at least 3 years and closed the accounts and my FICO score has gone up over 40 points.

Answer 4

Store credit card limit is normally pretty low. It shouldn't really matter closing them all at once if you have enough credit from regular card like Visa. Credit score is affected only by closing the cards, your available credit dollar amount goes down significantly.

Answer 5

Yes, it will lower your credit score. I would definitely NOT do them all at once. Do one once a month. Having all that credit open is actually better for future mortgages and large loans, because it shows you're responsible enough for other places to give you credit. But I understand not wanting them sitting in your wallet "nagging " you.

Answer 6

No credit cards is a good thing. It allows you more a line of credit because you owe no money so creditors are more willing to lend you when you need. Pay them off, get rid of them, be credit free!! You lucky duck!

Answer 7

If they are older accounts like over 3 years then keep them opened, the newer ones no, close them.

Answer 8

It depends. If you have "too many" accounts (say six or seven), it would be good. If you have "too few" (say 2 or 3) it would be bad. If it's an old account, it could be bad. There may be other factors.

Answer 9

That's a tricky question. I worked in collections for a few years and I was always told that it doesn't if you pay off your balance in full after you close it.

Answer 10

yes it will