topic Re: Closing Credit Cards in Rebuilding Your Credit

Closing Credit Cards

cdub69 — Mon, 04 Feb 2013 22:46:10 GMT

I currently have a score of 620.I have four credit cards with small limits all of which were opened in 2009.I would like to close the Credit One card it's fees are ridiculous.My question is since I still owe a balance on the card will this drop my score if I close it with a balance.

Re: Closing Credit Cards

Anonymous — Tue, 05 Feb 2013 02:55:42 GMT

It would depend if the balance and the CL are both reported. If both are reported, yes it will impact your utilization until paid.

Re: Closing Credit Cards

cdub69 — Tue, 05 Feb 2013 03:05:52 GMT

Yes they both are reported.I plan to keep paying on the account until balance is zero.

Re: Closing Credit Cards

Anonymous — Tue, 05 Feb 2013 03:13:54 GMT

Read this about closing credit cards then make up your mind. If the fees are a killer, I would. I just want you to know the impact that is possible.

Closing Credit Cards

Re: Closing Credit Cards

sunshine24 — Tue, 05 Feb 2013 20:37:36 GMT

I recently closed my stupid 2-year old Orchard Bank card to avoid the ridiculous annual fee. I only had one (much) older card and a few more 2 year & newer cards. My score did nothing when it reported closed, but then it was a low limit and I've had it at a zero balance for like a year, so I don't know if that made a difference.

Re: Closing Credit Cards

Anonymous — Tue, 05 Feb 2013 23:33:25 GMT

@sunshine24 wrote:
I recently closed my stupid 2-year old Orchard Bank card to avoid the ridiculous annual fee. I only had one (much) older card and a few more 2 year & newer cards. My score did nothing when it reported closed, but then it was a low limit and I've had it at a zero balance for like a year, so I don't know if that made a difference.

It wouldn't if you had a 0 balance when closed and older cards for AAoA.