If i will let my credit card expire and then decide not to renew it, will it have a negative impact in my credit history/score? is that also the same with requesting for an early termination (closing) of the credit card?
2006-12-13 10:37:36 · 4 answers · asked by Josh H 1 in Business & Finance ➔ Credit
You can't let your credit card expire, the issuer will automatically send you a new card before the old one expires. Unless you or they cancel the account, it never actually expires. If you close the account, it should be reported as "closed by consumer." This does not directly impact your score. It will impact the average age of your accounts and your credit to debt ratio. Both of these are considered in calculating your score.
2006-12-13 14:02:12 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Your cc account cannot expire, only your card. The only way you can close the account is by cancelling it. It will have a negative impact depending upon how old it is and what your current debt to credit ratio is if you have other cards. I suggest not closing it if it has been open for more than a couple of years and you do not have other cards. However, if you have older accounts and just do not want to run the risk of running a bill, go ahead and close it.
2006-12-14 02:29:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Credit score is a strange calculation that know body really understands. Close the cards, otherwise you'll just get new ones mailed to you.
2006-12-13 11:40:01 · answer #3 · answered by Sun and Sand 3 · 0⤊ 0⤋
If it is closed it may have an adverse impact...
Read this page about how FICO scores are calculated...
http://www.expert-credit-advice.com/credit_score.htm
Very interesting...
2006-12-13 14:14:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋