If you close a credit credit will it hurt your credit score?

Question

I was told this and was wondering if it was true.

Answer 1

YES,

If it is open and in good standing(no balance), just leave it alone...This leaves you more "available credit" which creditors look at when giving loans or credit cards..Please read the article below from msn money..and the link..

Can closing accounts can help your credit score
No, no, no. For the umpteenth time: Closing accounts can never help your credit score, and may hurt it.

Every time I write this, I get more e-mail from people who say their mortgage lenders told them exactly the opposite. It's true that having too many open accounts can hurt your score. But once you've opened the accounts, you've done the damage. You can't repair it by shutting the account, and you may actually make things worse.

The credit score looks at the difference between your available credit and what you're using. Shut down accounts, and your total available credit shrinks, making your balances loom larger, which typically hurts your score.

The score also tracks the length of your credit history. Shutting older accounts can also make your credit history look younger than it actually is, which can hurt your score.

Of course, credit scores aren't the only thing lenders look at when making decisions. They typically consider other factors, such as your income, assets, employment history and credit limits. Mortgage lenders in particular might look at your total available credit and ask you to close a few accounts as a condition for getting a loan.

But if your goal is to improve your credit score, you generally shouldn't close accounts in advance of such a request. Instead, pay down your credit card debt. That's something that actually can improve your score

Answer 2

It actually depends on your current account limits. If you are closing out one of your high limit cards, then yes. It will lower your FICO score based on the fact that you have less available credit. However, If you choose to cancel a card that does not carry a high spending limit then it will not affect your score in a negative way..Essentially, any changes you make to your credit trades (installment or revolving) will modify your credit rating.

Answer 3

I assume you mean credit card, or credit line and not credit credit. It shouldn't. In fact it can make things better. If you have too many cards with too high credit limits, let's say 5 card with $10,000 credit lines on each, they would look at it and realize you could easily go $50,000 in debt by maxing out all your cards. Best just to have 2 or 3 and pay them in full when due.

Answer 4

Having a lot of open credit lines is bad for your score. Closing one wouldn't hurt your score. Having it closed because you didn't pay it would hurt your score.

Answer 5

No it does not, assuming it is paid off. The more available credit you have the lower your score. Credit bureaus look at it as, the more available credit the more available debt. They view that debt as, if you have a $10,000 limit you could immediately be in $10,000 of debt if you so choose.

Answer 6

It is better if you call and close the account instead of the credit card company closing it. On your credit report it will just say customer closed or just closed.

Answer 7

two credit cards is good. if you always make your payments on time it helps. Having a bunch of credit cards with 0 balance is bad. or having bunches of maxed out credit cards is bad, it will hurt your credit score.

Answer 8

Probably is true. But the ideal situation is to get out of debt entirely and you don't need a credit score.

Go to www.daveramsey.com and find out how to become debt free. I read his book and it changed how I look at money.

Good Luck

Answer 9

if u don't have any other lines of credit yes
having at least one open good standing credit card will improve ur score because it shows ur trust worthy or credit worthy to other creditors

Answer 10

Yes, it true. As long as its in good standing keep it. It will help you in the long run especially if you are ever going to be a home owner in the future.