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New Visitor
Posts: 1
Registered: ‎01-29-2014
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Seeking advice on closing a credit card account

Hi everyone. So glad to have come across a forum dedicated to this subject.


I'm doing all that I can to keep my credit score high and climbing. I'm up to 4 credit cards now (a balance of $500 on just one of them). I'm thinking it would be a good idea to close one of them since 4 is too many. Am I right in assuming this won't impact my score? Am I also correct in that the best move is to keep the oldest and newest card going?

 

Thanks.

Valued Contributor
Posts: 1,700
Registered: ‎01-23-2013
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Re: Seeking advice on closing a credit card account

As long as you're carrying a balance, closing a card CAN hurt your score by raising your utilization rate. (So, for instance, if you have $2,000 in total credit and are carrying a total balance of $500, your util is 25%. But if you close one card that has a $500 credit line, you then have $1,500 in total credit with a total balance of $500, or 33%.)

 

For the short term it doesn't matter which card you close because even a closed card (in good standing) will usually report for 10 years. But most people here would still probably say not to close the oldest card. And many would say not to close any unless you're trying to get rid of annual fees. I say go ahead and close a card you don't have a good use for. Just be aware of its likely impact.

 

Valued Contributor
Posts: 12,948
Registered: ‎08-13-2013
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Re: Seeking advice on closing a credit card account


nero123 wrote:

Hi everyone. So glad to have come across a forum dedicated to this subject.


I'm doing all that I can to keep my credit score high and climbing. I'm up to 4 credit cards now (a balance of $500 on just one of them). I'm thinking it would be a good idea to close one of them since 4 is too many. Am I right in assuming this won't impact my score? Am I also correct in that the best move is to keep the oldest and newest card going?

 

Thanks.


If it does not have a AF it's no reason to close it! Use it once every 3 or 4 months and SD it

Old user name newportguy*** Current Score: myFico EQ - 830 (05/16/2015) Discover TU Fico - 829 (06/03/2015) EX Fico - 821 ( 05/01/2015 ) ******* Amex - BCP 10 K * Discover - IT 16.5 K * U.S. Bank Cash + Visa Signature 10.3 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ******FICO 800 Club Member ******* EQ 830 *** TU 829 *** EX 821 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
Established Contributor
Posts: 653
Registered: ‎01-31-2013
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Re: Seeking advice on closing a credit card account


nero123 wrote:

Hi everyone. So glad to have come across a forum dedicated to this subject.


I'm doing all that I can to keep my credit score high and climbing. I'm up to 4 credit cards now (a balance of $500 on just one of them). I'm thinking it would be a good idea to close one of them since 4 is too many. Am I right in assuming this won't impact my score? Am I also correct in that the best move is to keep the oldest and newest card going?

 

Thanks.


Many here will advise you not to close any accounts, but only you know how many you are comfortable handling.  If you feel that four is too many for you, then absolutely close one.  There may be a score impact if your available credit isn't high relative to your balances.  In order to give you more accurate advice, we really need to know, at the very least, what the credit lines are on each of your credit cards, which one has the balance and which one you plan to close.

   
FICO Scores 800+
Valued Contributor
Posts: 12,948
Registered: ‎08-13-2013
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Re: Seeking advice on closing a credit card account

[ Edited ]

Leadberry wrote:

nero123 wrote:

Hi everyone. So glad to have come across a forum dedicated to this subject.


I'm doing all that I can to keep my credit score high and climbing. I'm up to 4 credit cards now (a balance of $500 on just one of them). I'm thinking it would be a good idea to close one of them since 4 is too many. Am I right in assuming this won't impact my score? Am I also correct in that the best move is to keep the oldest and newest card going?

 

Thanks.


Many here will advise you not to close any accounts, but only you know how many you are comfortable handling.  If you feel that four is too many for you, then absolutely close one.  There may be a score impact if your available credit isn't high relative to your balances.  In order to give you more accurate advice, we really need to know, at the very least, what the credit lines are on each of your credit cards, which one has the balance and which one you plan to close.


The more TL's you have the thicker the file the better. Yes I know after you close it will be on your file for 10years!!! Just my 2 cents

Old user name newportguy*** Current Score: myFico EQ - 830 (05/16/2015) Discover TU Fico - 829 (06/03/2015) EX Fico - 821 ( 05/01/2015 ) ******* Amex - BCP 10 K * Discover - IT 16.5 K * U.S. Bank Cash + Visa Signature 10.3 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ******FICO 800 Club Member ******* EQ 830 *** TU 829 *** EX 821 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
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