Closing a credit card bad? Or am I wrong?
I was told by a banker that if I close one credit card that I can lose credit from doing that? But why would I not do that if I get a new credit card based on my new credit score? I no longer need the old one so why would I not close it?
Or am I supposed to close the credit card and take the hit to my credit knowing my credit score will bounce back?
- ALv 74 weeks ago
If you close it the amount of credit available to you will drop so it will drop your score a little. You can just cut it up and not use it and leave it open.
- AmyLv 74 weeks ago
Part of your credit score is how long your accounts have been open. Remember, the purpose of the score is for lenders to rate you as a potential customer - they want someone who will stay with them a long time.
A closed account does continue to count as positive in your credit history, but note that a history only goes back 7 to 10 years. Closing the account may hurt your score again when it ages off of your history.
Having two cards open may improve your credit score. It increases your total credit limit, which makes your spending a lower percentage of that limit.
That said, if you have to pay a fee to keep the account open, close it! In most circumstances the benefit to your credit score isn't important enough to pay for.
- TavyLv 74 weeks ago
Never heard of that here in the U.K.
- 4 weeks ago
I honestly think it’s dumb for credit to go down because you close a card.if you paid it off that all what I personally matters and it should give your credit a boost not a decline.they just want you to keep it open so you can temp to use it and owe them money again .america for you!