Can you voluntarely close credit card accounts to effect your credit score positively?

Question

I'd like to know if closing credit accounts makes your credit score reflects positively or negatively on your credit report?

Answer 1

The previous responders are correct. If you close out excess credit card accounts, you will actually hurt your credit score. You are erasing a portion of your credit history, plus lowering your debt/credit ratio. Both of these factors make a major part of your credit score.

It is recommended that you have 3-5 credit cards or other forms of accounts. If you have (for example) 10 credit cards, and most are not in use, then it may help you to cancel some of them. But you need to be careful how you do it.

1) Cancel only one card every 3-4 months. This will lower your score by a few points but it will restore itself in a few months.

2) Do not cancel any cards if you are intending to apply for credit soon (car loan, mortgage, etc...) You need every point you can get.

3) Consider getting some of the credit limits lowered. You really don't need that card with $10k of credit limits on it, do you?

4) Use a couple of cards each month. Buy something you usually pay cash for each month anyway (groceries, utility bill, gas) and pay it off a the end of the month. The improved use of your credit will help your credit history and will deflect the negative hit when you start canceling other cards.

Check out http://www.myfico.com This site is the home site for the folks who developed the FICO scoring system, and has lots of consumer advice you can read. Understand how your credit score is put together and calculated, and you will do just fine in the future.

Answer 2

i've got confidence it could have some variety of destructive result. I had a JCPenney card which I closed the account on after paying it off. It did no longer result my credit particularly because of the fact I had it for a jointly as and slowly paid it off. whilst lenders would ask approximately it, I merely instructed the actuality, I not often used it. they are able to enormously plenty tell from the historical past on it. in case you paid off a "maxed out" card and then close the account, lenders would verify out it as you closed it for the reason which you probably did no longer have confidence your self. attempt to save it open, be diligent, and save the charges small, pay somewhat extra effective in the direction of the month-to-month fee each and each month to maintain the finance costs low and take a verify out and rebound to get your credit decrease back up. solid luck! :)

Answer 3

if you are on good standings with the company, keep it, The more positive credit you have earned, it will show on your credit score.

Answer 4

positively to a point then negative after that. if you close too many your available credit is too low and lowers the score.

Answer 5

when you close a card - you close the history - negative impact. when you close a card - you raise the credit ratio of available credit to used credit - negative impact.

You shouldn't close your cards - just cut them up (unless they have an annual fee).

Answer 6

Yes you can close them, but keep in mind, it will probably lower your score.

his is how your score is calculated: http://www.expert-credit-advice.com/credit_score.htm

Answer 7

you can lower your scroe by closing accounts, it depends on your situation you want to keep atleast 50% of your overall credit available so you don't look maxed out.

Answer 8

yes you can but it should be avoided as can give -ve credit rating