is closing a credit card account bad on your credit card report?

Answer 1

Generally, no. But it also depends on several other factors such as, debt to income ratio, work history, whether you have other cards, the amount of debt on other accounts, etc.

The above-listed factors are used to create your FICO score.

Hope this helps.

Answer 2

A big part of your credit score is the debt to available credit line ratio. When you close a credit card, you lower the available credit line, thus your debt ratio increases and this will lower your score.

Also, if the account is one you've had for a long time, you lose the history which also hurts your score.

Personally, I think it's stupid to keep credit card account open just for the sake of having a pile of credit cards. You have to monitor and secure them. Just too many chances for problems.

I suggest you keep 2 of your oldest major credit cards that do not have an annual fee. Close store or gas charge cards unless you have some specific reason for keeping them.

Of course, only charge what you can pay off in full each month. Save on interest and stay out of debt.

Answer 3

a pair of credit card debts won't injury your credit status in case you shop the money modern or have them paid off. in spite of the undeniable fact that, having an excellent form of credit card debts open no count if there's a stability of however in case you in no way use it may decrease your credit status. the reason, I surely have been instructed, is that each and every of those different credit card debts have a funds decrease on them and say you had 10 credit enjoying cards each and every having a funds stability of $5000 there may well be not something to quit you from drawing the optimal from each and every account and then be in debt for $50,000. The credit bureaus frown in this threat. call the financial agency and cancel the enjoying cards

Answer 4

It depends on who closes it. If your lender closed the account for non-payment, then yes this could hurt you. If you choose to close it, think about how much credit you have. Lenders look at how much credit you have available. If you don't have enough credit available, it can make you less likely to get more credit. However, if you already have 10 cards open a lender may see you as having too much credit (and also too much potential for debt.).

Answer 5

It isn't a good idea if you don't have any other form of credit at all.
Case in point. My father went to make a purchase and they denied him the loan because they said he had no credit. They meant that literally because he had no credit card to his name.
The best thing to do is pay off your credit card(s) and keep at least one available. Nothing can happen except good by you keeping it... unless your hiding something or you are addicted to it.

Answer 6

sad but true...its best to keep it open...just dont use the card as much....hopefully, you dont have a maintenance fee because you will have to continue making monthly payments, but if you dont have a maintenance fee, then you can keep the card open and not pay any monthly fees if your balance is zero. the credit system is designed to trap you and keep you sucked in. if you have no credit, you have bad credit, well, if you get a credit card, you boost your credit score, then if you decide to close it, then you hurt your credit score. you're damned if you do, and you're damned if you dont

Answer 7

No. Usually two and three credit accounts is enough for most people.

Answer 8

If it is paid off, no.

Having too many open credit card accounts is negative on your credit report.

Answer 9

Not necessarily, but even better is to pay off the balance and NOT use the card. Having available credit and not using it reflect positively on your report.

Answer 10

I would advice paying it off but leave it open. One of the things creditors look for is how much credit you have available (meaning that you have options but don't need to use them).