If you have a zero balance on a credit card is it better for your credit score to keep it open or close it?

Question

I once was told it hurts your credit score when you close accounts. Is this true?

Answer 1

You've had a lot of answers. Here's one that may help you.

Your credit scores are reflected by how many accounts you have open and how much total debt you have. This includes car payments and house payments, etc. Your credit rating shows up as total amount due for all accounts.

Since this is the case, it is best to close an account if it is dormant. The more accounts you have open, the worse it looks to the creditors.

Answer 2

If this is one of the only credit cards you have? Then do not close it. Continue to use it for every day things like food and gas, be sure not to exceed 30% of your credit limit in any given month and pay before the due date.

If on the other hand you have several credit cards then close it.

There are a lot of uninformed people out there, do not listen to them. Your credit score depends on your payment history 35%, your time in bureau 15%, your type of credit used 10%, your new credit 10% and your debt to credit ratio 30%.

You need at least 2 open credit card accounts and at least 1 open installment account all with good long pay historys to have both a good credit score and a good credit profile.

Answer 3

The answer is, maybe. You see, there are two factors at work here. First, there is the plus factor of variety of credit. More than 1 credit card is better than just 1. On the other hand, the more available credit you have, the more trouble you can get into, and that factors into your score as well. Perhaps the real question is, do you need the card? If so, keep it. I keep one empty, high limit card in my safety deposit box. If something major goes wrong, I have a safety net.

Answer 4

If it is between the only credit enjoying cards you have? Then do no longer close it. proceed to apply it for on a daily basis issues like nutrition and gas, be confident to no longer exceed 30% of your credit cut back in any given month and pay in the previous the due date. If on the different hand you have various credit enjoying cards then close it. there are multiple uninformed people available, do no longer pay attention to them. Your credit relies upon on your fee history 35%, some time in bureau 15%, your type of credit used 10%, your new credit 10% and your debt to credit ratio 30%. you desire a minimum of two open credit card money owed and a minimum of a million open installment account all with stable long pay historys to have the two a competent credit and a competent credit profile.

Answer 5

Yes, because 2 things: it decreases your payment history which makes up 35% of your score, and also decreases your available credit making it look like you owe more than you're borrowing, which makes up 30% of your score that way. WIth that said, you should ask yourself is it worth it to tank ⅔ of your score to close your card. Credit is designed to be used sparingly and the way it's scored insures that it happens that way. If you open an account, you better be certain that you're going to use it, use it wisely.

So to answer your question, yes it can.

Answer 6

close it. Even if you have a 0 balance. Every credit card you own makes you more of a risk, therefore a worse credit score.

Answer 7

I had an issue with this last summer. I decided to close all of my open accounts and it did have an effect on my credit report b/c I did it all at once. If you do it, stagger it so it doesn't look so drastic.

Answer 8

It always looks good to have open accounts with a zero balance. Don't close it.

Answer 9

Keeping the credit card will establish your credit rating.
Plus, you never know when you are going to need a lot of money fast ie. plane ticket to go to a family funeral etc.
As long as you pay your card in full every month, you shouldn't have any problems.

Answer 10

If that's your only credit card, keep it open. If you have others, close it.