I just closed a credit card account that I've had for four years. I have a few other credit cards (with no annual fees) that I've had for 8-10 years and my total available credit has only decreased by 2%. Also, I only utilize ~20% of my total available credit. How much will my FICO score drop under these circumstances? I haven't used the card in 3 years due to having lower interest cards (only to pay the annual fee). This decision was prompted by a $59 annual fee! That seems high, especially when I don't use the card. The fee will be refunded. Thanks!
2007-09-04 10:36:43 · 6 answers · asked by ? 3 in Business & Finance ➔ Credit
I think you are safe specifically because the acct you closed is only 4 years old, while the ones that remained opened were the oldest at 8-10 years. And your utilization % is still good.
2007-09-04 13:44:21 · answer #1 · answered by Lynn 5 · 0⤊ 0⤋
Most of these answers are partly true. In certain circumstances, closing an account lower your score. It is a good idea to keep the accounts that are utilizing 20% of its credit line. Especially if they've been open awhile. It's better to at least have an account on your credit that's not being used rather than not having an account at all. Lenders look at all of that when deciding whether or not to lend credit. Check out this site it gives a lot of useful information.
http://callacorp.ws/
2007-09-04 11:20:35 · answer #2 · answered by GTO LovR 2 · 0⤊ 0⤋
If that credit card had a big line of credit and no balance, then your percentage of credit used which was 20% may go up. If it just goes up a little, it probably won't hurt you too much.
If the percentage went up a lot, your score will drop. Start paying some of your debt down!
2007-09-04 10:42:34 · answer #3 · answered by AllTheGoodNamesAreAlreadyGone 3 · 0⤊ 0⤋
Sounds like the right thing to do. It shouldn't really affect your credit score.
Personally I don't suscribe to the never close a credit card account theory. I think its a very bad idea to have all those cards laying around that you have to secure and monitor. I say if you don't use 'em, close em ... well at least all but 2.
2007-09-04 11:11:00 · answer #4 · answered by bdancer222 7 · 0⤊ 1⤋
If everything is as you describe, your score will not change at all.
2007-09-04 10:53:06 · answer #5 · answered by ? 7 · 0⤊ 1⤋
go to myfico.com it's not a scam and it explains all of this to you.
2007-09-04 10:58:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋