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Closing a credit card without hurting score

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maygit
New Visitor

Closing a credit card without hurting score

I am aware that all my credit cards must have a zero balance in order to close a card without hurting my score. My question is does a card that I am a sub-account of also need a zero balance? I have a credit card that is under my name but my dad is the primary account holder, does this card also need to have a zero balance before I am able to close a different card without hurting my credit score?

 

Also I have a different credit card that has a negative balance, in that I have credit I can use. Should this card also carry a zero balance? Or it should not affect my score since I do not owe any money on it?

 

Thanks

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3 REPLIES 3
guiness56
Epic Contributor

Re: Closing a credit card without hurting score

Any account with a balance that is reporting on your CR, when closed, will hurt you.

 

Are you an AU on your dad's CC?

Message 2 of 4
maygit
New Visitor

Re: Closing a credit card without hurting score

I am an authorized user on my dads Visa business credit card. I have my own card under my name but hes the primary account holder for the card. I am a sub-account. It is a business card.  

 

I have 4  credit cards (2 AMEX, 1 Business Visa (dads), 1 Discover) including my dads business card that is under my name. I am planning on closing one of my AMEX cards due to me not wanting to pay the yearly fee after I pay off the balance.

 

I read somewhere that in order to not hurt your CC score when closing a card you must have a zero balance across all of your cards. My two questions are does this include a CC that I am a sub-account of (dads)? And also I have a Discover card with a negative balance (-42.00) meaning I have 42.00 i can spend however I please, does this card have to be at a zero balance as well when I close my AMEX? Or does it not matter.

 

I appreciate any info.

Message 3 of 4
llecs
Moderator Emeritus

Re: Closing a credit card without hurting score


@maygit wrote:

I am an authorized user on my dads Visa business credit card. I have my own card under my name but hes the primary account holder for the card. I am a sub-account. It is a business card.  

 

I have 4  credit cards (2 AMEX, 1 Business Visa (dads), 1 Discover) including my dads business card that is under my name. I am planning on closing one of my AMEX cards due to me not wanting to pay the yearly fee after I pay off the balance.

 

I read somewhere that in order to not hurt your CC score when closing a card you must have a zero balance across all of your cards. My two questions are does this include a CC that I am a sub-account of (dads)? And also I have a Discover card with a negative balance (-42.00) meaning I have 42.00 i can spend however I please, does this card have to be at a zero balance as well when I close my AMEX? Or does it not matter.

 

I appreciate any info.


If you are listed as an "authorized user" closing the account may or may not result in an automatic deletion by the creditor. If a "joint account", then it'll remain once closed. If it deletes, then it can impact you via the impact to your mix, impact to utilization, and impact to your length of history/AAoA. For example, if the utilization on your card helped, improved your mix (assuming you were lacking on CCs), and the card was your oldest and/or older than your average of your accounts then you could see a drop in score. Conversely, if the utilization hurt (assuming it had a balance) and was younger than your AAoA or a new account, then a deletion could help your score. If the account didn't delete, then age/AAoA and mix won't be impacted. But your utilization could be impacted. It depeneds if the util helped or hurt. FICO stops factoring cards into util when the balance hits $0 and reports as closed.

 

If you have a credit balance with a CC it'll report $0. Once closed with the credit balance then they'll refund the $$$.

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