If I cancel my credit card and get other one with more benefits w/ same bank.Will my Credit Score be affected?

Question

I'm thinking of cancelling one of my two credit cards and get a new one with more benefits with the same bank (BofA). I want to know if my Credit Score will be affected with this action. The credit card I want to cancel is the first one I got in my life. I have had it for almost 2 years. Hope to receive any advice on this. Regards, MT

Answer 1

Yes, any cancellation as well as getting a new card will have an impact on your score.

Answer 2

Closing an account would affect your credit limit. Let's say you have 2 credit cards right now, with credit limits of $5000 each, and that you have a balance of $2000. The credit-debt ratio currently is 5 to 1 ($10k: $2k).

What happens if you cancel one of the cards is that your ratio becomes 5:2 ($5k: $2k), which definately lowers your credit score.

If you get a new card with more benefits and at least the same credit limit as the previous one, it would not affect your credit score.

But, a credit card company always checks your credit score before issuing a card to you, and this (creditor checking your score) can lower your credit score a bit temporarily. It shows up in your credit report which creditor looked at your records, and how recent. Recency and frequency of creditors checking your score does affect your credit score.

Answer 3

right this is why canceling enjoying cards can harm your score, enormously. Your credit, different than for on-time invoice funds, is in keeping with 2 different variables: your earnings to debt ratio and your debt to credit obtainable ratio. subsequently, in case you cancel the enjoying cards, permit's say each card is granting you a minimum of a $5,000 credit shrink, you're lowering your obtainable credit by practically $15,000 at the same time as your different funds owed stay the comparable. If on that final card you have it maxed out (which you're saying you do not, yet as an occasion), then yeah this could replicate badly. If nevertheless you may get rid of the stability on your fourth card, even consistent with probability ask the cardboard organisation to advance your shrink once you're questioning of shielding it and you qualify, then slowly cancel the different 3 enjoying cards separately, this might positioned you in extra sensible shape. nonetheless, the actuality you had practically 4 credit enjoying cards on your checklist is going to chew you somewhat ultimately, yet credit does heal with time. in case you have not considered your credit rfile in a at the same time as, i could attempt making particular you have not have been given any mastercard debt and cancel considered one of them. Then a month later, verify your credit rfile (you may get a credit rfile for unfastened as quickly as a 365 days). See the place it falls. something above 650 is considered a super score, so once you're above that, i could think of you would be superb to get rid of the others too.

Answer 4

Your credit score will be lower if you cancel the card -especially the one you've had the longest. However, because you're staying with the same bank, it may not drop a lot. Part of your score involves long-term relationships with the same banks.

Answer 5

It may affect your credit score, but probably only by a small amount and briefly. More important is your history of timely payments and the amount of debt you carry relative to the amount of credit you have available. I wouldn't let the credit score issue prevent me from getting a better card, especially if it has a lower interest rate or lower costs.

Answer 6

Yes it may affect it, but probably not very much. The amount it is affected will probably be less important then the advantages of switiching cards though. Just dont make a habit out of doing that often.

Answer 7

If you have a paid off that card or if you wish to transfer the balance and you have a reasonable payment record you will have no problems and it will not affect your credit record.

Answer 8

Don't cancel and reapply. Call the customer service number on the back of your existing card, and see if they'll convert your account to the new product.

Answer 9

dont close your card unless its paid off first. you can get a low interest loan to pay it off. closing it will not hurt you if its paid off already. its best to close out cards that are not being used.