Does it affect my credit score if I close credit card accounts I havent' used for over a year. I don't use them any more so I called them and had them closed. I still have at least 10 other accounts I use regularly.
2007-02-20 06:30:47 · 10 answers · asked by Janet H 3 in Business & Finance ➔ Credit
Keep Credit Cards that Have No Annual Fees Open For as Long as Possible- The length of your credit history is a good indicator for your short term performance on paying a bill or loan. So, even if you’re trying to resist the tempation of using your cards, do not close them. Cutting them up is ok.
Check out our full article about Credit Scores, including a brief overview and how to improve your score
http://millionster.com/articles/debt/increase-fico-credit-score/
2007-02-22 08:53:50 · answer #1 · answered by Anonymous · 0⤊ 0⤋
They'll still appear on your credit report, but it will say the accounts were closed per your request, which is better than having the store close the account on you. They will stay on the report for 5-7 years. As for if this action will have an effect on your credit score, it shouldn't. What they look at is to see if your payments are on time and as long as you are current with your other accounts, you should have a good score. Having several cards (but not too many) is better than only a few cards because it shows you can manage your finances.
2007-02-20 14:38:32 · answer #2 · answered by macc_1957 3 · 0⤊ 0⤋
You are better off just leaving them open, especially if you are planning a huge purchase in the near future, like a home. But if you are not planning any huge purchases or anything that would require looking up your credit profile then go ahead and close an account because you will have some time to recoup the losses. As far as affecting your credit score, it just depends, some affect your score more then others, it is a crapshoot. But if this account is your oldest account I would have left it open, because that is good credit history you are throwing away if it was.
2007-02-20 14:37:43 · answer #3 · answered by nickhawkins21 3 · 1⤊ 1⤋
There is no real clear cut answer. Some experts advise leaving them open since the length of your relationship with the lender as well as the percentage of your use of your credit line might be effected.
In other words if you have ten accounts, each with a $1000 credit line and a combined credit line of $10,000 and you presently owe $3000, you are only using a third of your credit. But if you close three accounts, you will be using almost 43% of your credit, which can lower your score.
2007-02-20 14:37:41 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If you have that many cards, it will probably make little difference. As an aside, though, why have all those accounts open? You are leaving yourself wide open for identity theft. Besides, a good credit score just means you're in debt, you like debt, you make regular payments on your debts & you've been doing all 3 for a good while. Why not just get your financial life in order & start buying things w/ actual money? I don't mean to be mean, I used to have 6 or 8 cards, too. Then I found Dave Ramsey. I am totally converted!
2007-02-20 15:06:41 · answer #5 · answered by Tom's Mom 4 · 0⤊ 0⤋
Since you have 10 accounts you use I suggest you close tthe dormant accounts. While your credit worthiness is based on how much of your credit you are using, it can also hurt you if you need new credit. I have several cards and recently applied for one which gave me a good rebate on purchases. The card was issued for a lower amount than usual ($3000) but the credit card company offered to increase the limit up to $40,000 if I dropped some of the other cards.
2007-02-20 15:03:35 · answer #6 · answered by cwagley@sbcglobal.net 2 · 1⤊ 0⤋
It sounds like you have too many accounts and that can affect your credit score. You want a few revolving accounts, but you need to keep the balances low on all of them and pay the bills on time. I don't think closing the unused account will hurt when you have so many.
2007-02-20 14:41:34 · answer #7 · answered by tehuskey513 4 · 1⤊ 0⤋
Closing a card could affect your credit score negatively if:
The card still has a balance
You don't have any other credit cards
The card still has available credit when your other cards don't.
For example: If you have one card that is maxed out and one with no balance you are considering closing, doing so would negatively affect your credit ratio.
2014-07-24 00:01:21 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It can. Basically, you're erasing credit history, especially if you had been current on them. But with the number of accounts that you currently use, you should be fine.
2007-02-20 14:35:43 · answer #9 · answered by Anonymous · 1⤊ 0⤋
as far as i know, if you paid the cards off and made payments regularly then your score should go up as long as the company is reporting.
2007-02-20 14:35:07 · answer #10 · answered by angelis_wolf09 2 · 0⤊ 0⤋