is my credit score affected when I close credit cards?

Answer 1

A large part of your score is based on the ratio of revolving debt to available credit limit. When you close a credit card, you lose available credit and the percentage of debt would be higher. This would decrease your score.

However, if you don't carry balances on your credit cards (which is the smart thing to do), closing the credit card would only be a minor ding and you score would quickly recover.

One other thing to consider, is how old is the card. You close the history when you close the account.

I recommend keeping the two oldest major credit cards without annual fees. Only keep gas or store charge cards if you have some special purpose. Close the rest. There's no reason to secure and monitor credit cards that you don't use.

Answer 2

Yes it is adversely affected. It is better to have an account sit dormant for a long period of time rather than close it. When you close an account or a creditor closes an account, that's a black mark, could be percieved you can't handle your credit. An account that has been with you for a long time will raise your scores especially if it's a clean account. The thing to bear in mind is that you are being watched by all of your creditors. Mess up on one account and your terms on other accounts are likely to change, and not to your benefit!

Answer 3

In addition to the percentage of open credit available on your current accounts , your score is affected by the average age of the accounts .
If you close all of your credit cards like I did one time , it can devastate your credit score by leaving only the most recent accounts and no available open lines.

Answer 4

Yes, but who cares? If you don't borrow money, you don't need a credit score.