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Cancelling Card

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Cancelling Card

I was thinking of cancelling my credit card at one bank and opening the same one (mastercard/visa) at another bank.  How would my score be impacted if I did it this way vs closing the account alltogether??

 

Thank You

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Re: Cancelling Card

You'll probably mess up your average age of accounts by closing an older account and opening a new one. This can lower your score.

 

You could also impact your utilization depending on your other card(s) balances and limits.

 

I guess what I'm saying is I can't see any positive score change happening from doing either of those actions. I'm someone more senior will reply and use less generalizations.

7/16/09 - EQ 684, TU 691

7/25/09 - EQ 682 (-2) 7th INQ did it.
8/21/09 - EQ 684 Bounced back from the Inq even though none expired. There was a new credit account opened on the same day. *shrug*
10/23/09 - EQ 691
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Re: Cancelling Card


Matth1669 wrote:

I was thinking of cancelling my credit card at one bank and opening the same one (mastercard/visa) at another bank.  How would my score be impacted if I did it this way vs closing the account alltogether??

 

Thank You


 

Is there a reason why you'd want to cancel that CC? Any fees? Before doing anything, I'd suggest reading the Closing Credit Cards thread found stickied somewhere within this board.

 

In general, if you don't have any fees or charges for keeping the card, or maybe for personal reasons, then I'd suggest shelving it and using it every 4-6 months for a pack of gum or some coffee somewhere and then PIF.

 

Closing a credit card will immediately impact your utilization and your mix of credit, and as hinted, will impact your AAoA 10 yrs out when it falls off your CR. If your util is close to $0 on your other cards, then util won't impact you per se. If you have other CCs, then your mix of credit won't be affected. If the opposite is true on either, then closing the card will hurt your scores and that may impact your future creditor's decision on approving you.

 

Adding the new CC will result in an inquiry and that could hurt your score if you have higher scores. Adding the new account will drop your scores (my avg. loss has been 20-25 pts), but you'll fully recover within a year.

 

ETA...that link for Closing Credit Cards is buried some within the stickys:

 

Closing Credit Cards

Message Edited by llecs on 07-23-2009 10:47 AM
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