Is it really true closing a credit card account is usually bad?

Question

I just saw this question answered on this forum. The "best" answer said once closed, the info on credit account vanishes. However, I've check my credit report several times over several years with all three agencies. ALL the credit cards I've had and cancelled are there, along with histories of max credit extended, and how long the accounts were open. Some of these accounts had been cancelled nearly 10 years before. I don't know about what others see, or are allow to "count" on credit reports, but it is not true these histories disappear from your credit history.

Answer 1

Fact-- -Closing a credit card lowers your overall credit line. Which is a part of your credit score. The higher your credit line the better it is for your score.

Fact number 2. Closing credit cards can limit your credit history thus lowering your credit score.

Fact number 3 . Leaving an open account can NOT hurt your score in anyway. So unless you pay an annual fee, there is no reason to cancel it unless you simply dont trust yourself.

But the bottom line is you never really know what will happen in your individual case. Nothing may happen, or your score could drop a quite a bit.

Answer 2

A couple of credit card accounts will not hurt your credit rating if you keep the payments current or have them paid off. However, having a lot of credit card accounts open whether there is a balance of even if you never use it can lower your credit rating. The reason, I have been told, is that each of those different credit card accounts have a cash limit on them and say you had 10 credit cards each having a cash balance of $5000 there would be nothing to stop you from drawing the maximum from each account and then be in debt for $50,000. The credit bureaus frown on this possibility. Call the bank and cancel the cards

Answer 3

While they may not physically diappear, the scoring system takes into account the number of open tradlines with payment history, available credit, which can give it the appearance that it disappears. Closing accounts do in fact lower the available credit from the combined available credit from the other open cards, giving the appearance that more credit's being used than it really is, and it shortens the average age of the accounts. 15% of your score is based on how long credit's been established to begin with. You close an account that's at least 10 years old, you shorten the average age of all the other open accounts by a lot. Closed and paid accounts whether it's collections or positive accounts that you close doesn't affect your score any more. Collecion accounts can lower your score anymore once their paid as would a positive account would increase it.

Answer 4

If you close an account it will still show up on your report for ten years from the date of last activity. It is supposed to fall off after that.
If you have a long history with the card, then it is a terrible thing to close your account. The length of your credit history makes up 15% of your score. If you get rid of a good, strong history, you score will suffer.

Answer 5

Revolving credit is one of the best positive hits you can get. Pay it down, yes. That reduces your debt load and brings up your score.

Do not leave it empty. An unused card is as bad as a closed one. Use it every month for something small, like the water bill. Pay it back to 0 every month. This will build your credit score faster than anything else.

Answer 6

I used to work as a private investigator and you'd be amazed how long some companies keep a record of your credit accounts. If you've ever held credit with anyone, it can be found easily through online databases. All it takes is your SSN or even your last name.

Kind of makes you a little more weary of the Internet, huh?

Answer 7

old credit cards will still show up....

something ijust heard on the radio is that there are companies that will rent good credit they will (for a fee) put you as a authorized user on a person with a good payment histories credit card. and when you are added on a credit card it will show up on your credit record as your credit card and will make your score go up almost instantly.......

look into it. ask your grandma or someone with a good credit history to add you and waalaa it will help


Dave
www.Pa-Cichlids.com

Answer 8

Items on your credit report should stay on there for about 7 years. Eventually, they will drop off. If I were you, I would just pay off the cards and just shred them.

Answer 9

closing a credit card is always a good idea. If you dont have a credit card you wont get into credit card debt. If you dont get into credit card debt you will have money. Then you win.

NO DEBT!

I see debt people.