If you close credit accounts that you never use does it raise or lower your credit report score?

Deal Score0

  1. Reply
    November 10, 2011 at 8:50 am

    I think it is viewed slightly negatively

  2. Reply
    November 10, 2011 at 9:28 am

    Up to a point, closing accounts you don’t use can raise your score if you have other accounts that you do use and handle correctly. The reasoning is that potentially you could use that credit at any time, so if you get into financial trouble you could do the not smart thing and wind up in even more trouble.

    There is also some effect regarding the size of the credit limit on those accounts. Closing larger unused accounts will help raise your score more than closing smaller unused accounts.

  3. Reply
    Maddy Waddy
    November 10, 2011 at 10:13 am

    Lowers. You no longer have that unused available credit that shows you don’t need and don’t abuse credit. It’s like everything else. You’re more likely to get credit if you don’t need credit!

  4. Reply
    November 10, 2011 at 10:19 am

    Most of the time it will hurt your score if you close accounts that were in good standing. But, it is possible to have too many credit accounts. If you pay for the FICO score, the report will tell you what is lowering your score.

    If you have security concerns about your accounts, close them, otherwise let ’em ride..

  5. Reply
    November 10, 2011 at 11:15 am

    It does not affect your Beacon SCORE, as long as you requested the account closed and were in good standing with the monthly fee’s.It will show up on your credit report, as an FYI to other creditors viewing it.

  6. Reply
    November 10, 2011 at 11:39 am

    It raises it. I just closed out 2 Capitol One cards, and my score went up by 10 points

  7. Reply
    November 10, 2011 at 12:13 pm

    it lowers it by a few point, but not much.

  8. Reply
    November 10, 2011 at 12:57 pm

    Notice how those folks saying it will raise your score don’t give any source for their info?

    ’cause it’s not true.

    First, visit http://www.myfico.com and look around. This is the site of the folks who developed the FICO scoring system, so they should know, shouldn’t they?

    Two factors that make up your credit score are credit history and debt/credit ratio.

    When you cancel cards, you erase a portion of your credit history. That’s going to hurt your score.

    And when you cancel cards, you lower the amount of credit availablity. Your lower overall credit limit effects your debt/credit ratio by making it look like you are using too much of your available credit.

    Bottom line…do not cancel your cards. Consider lowering the credit limit instead.

  9. Reply
    November 10, 2011 at 1:29 pm

    Speaking as a nationally known lending and credit score expert (book, radio shows, newspaper column, etc.)…

    You will SERIOULY harm your credit scores by closing the wrong accounts.

    If you are carrying balances on your MAJOR credit cards, don’t close any of them–your scores will drop.

    NEVER close your oldest account, no matter which one it is, unless you have one you opened around the same time OR unless your next oldest account is at least 10 years old. Your scores will drop just a little or a whole lot, depending.

    You may safely close store cards or “merchandise cards” like Best Buy, Costco, etc. UNLESS they are your oldest. See above.

    To keep scores highest, make a small purchase with every single major card every five months and pay on time. This moves the “date of last activity” forward in time, and if YOU do this, your scores will go up two months later, but will drop a little until then.

    Using cards with no balance drops scores for a month or two.

    Using cards and adding 25% to the previous balances lowers scores.

    Nice, precise advice, huh?

    I know a radio show host (I was on his show) and he closed all of his cards. His scores dropped 160 points. Don’t make a mistake. Follow MY advice.

  10. Reply
    barbara w
    November 10, 2011 at 2:00 pm

    it will lower it. Score is determined by Line of Credit minus outstanding balance plus how many late payments.

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