Closing Credit Cards and Utilization

[KRF]

I know they say don't self-close credit cards and to just throw them in a sock drawer. I did this with my Dicover It card which I've had forever. I'm trying not to use credit cards. I didn't think to put a small amount on it every now and then, so Discover closed the card due to non-use. I don't want to reapply because I don't want anymore cards. My CL was 15k. 

How does this impact my DTI? Will this negatively impact my credit score since it closed?

Thanks, friends. 

[Minimalist]

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@KRF wrote:

I know they say don't self-close credit cards and to just throw them in a sock drawer. I did this with my Dicover It card which I've had forever. I'm trying not to use credit cards. I didn't think to put a small amount on it every now and then, so Discover closed the card due to non-use. I don't want to reapply because I don't want anymore cards. My CL was 15k. 

How does this impact my DTI? Will this negatively impact my credit score since it closed?

Thanks, friends. 

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That depends on a lot of factors, how many other cards do you have, what's your utilization?  Generally the Discover should stay on credit for 10 years showing the history, by the time it's removed your other cards (if any) will have aged along with it and will still be active.

On the other hand, if you're not using credit cards, why not close them all (or all but one or two) and not worry about score?

Quite a bit of information missing here.

[KRF]

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@Minimalist wrote:

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@KRF wrote:

I know they say don't self-close credit cards and to just throw them in a sock drawer. I did this with my Dicover It card which I've had forever. I'm trying not to use credit cards. I didn't think to put a small amount on it every now and then, so Discover closed the card due to non-use. I don't want to reapply because I don't want anymore cards. My CL was 15k. 

How does this impact my DTI? Will this negatively impact my credit score since it closed?

Thanks, friends. 

---

That depends on a lot of factors, how many other cards do you have, what's your utilization?  Generally the Discover should stay on credit for 10 years showing the history, by the time it's removed your other cards (if any) will have aged along with it and will still be active.

On the other hand, if you're not using credit cards, why not close them all (or all but one or two) and not worry about score?

Quite a bit of information missing here.

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Sorry, I will add more information.

I don't want to use credit cards because of the situation I've gotten myself into.

I have high balances on my other cards. I just paid off my Chase which has my second largest CL.

CITI CC: 4.7k (0% until 01/26)
Wells Fargo CC: 8.8k (0% until 04/2025)
BofA CC: 5k (0% until 07/2025)
BofA CC: 2.8k (0% until 10/2025)
BofA CC: 11.3k (22.24% APR)
USAA CC: 5k (0% until 04/2026)

These are all pretty much maxed - hence why I do not want to use anymore cards. This obviously impacts my credit score (the high util) so that's why I was wondering about Discover closing and the effect it has. 

[Varsity_Lu]

@KRF 

Losing $15k of credit will definitely have a negative impact in your case since your denominator just got smaller and your numerator is pretty big. However, that part of your score (utilization) changes rapidly and has no memory from month to month. So, as long as you keep paying down your current charges and don't add any additional, your score will be headed in the right direction. And your score is only really important if you are applying for new credit or loans. In your case, you probably should do that, so the temporary dip in your score due to utilization won't matter much.

[Varsity_Lu]

@Minimalist 

It will help for 10 years as far as age of accounts go, but the $15k of lost credit won't be calculated into his utilization will it?

[Wandering]

DTI = Debt to Income
Only Debt or Income effects DTI

You are questioning "Utilization" (UTL/UTIL)
Your Total CL was $52600
Your Total CL is now $37600

Using 90% UTL on the cards you posted

Your aggregate utilization with the 15000 Discovery was
52600 CL = 64.33%

Your aggregate utilization without the 15000 Discovery is
37600 CL = 90%

[KRF]

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@Varsity_Lu wrote:

@KRF 

Losing $15k of credit will definitely have a negative impact in your case since your denominator just got smaller and your numerator is pretty big. However, that part of your score (utilization) changes rapidly and has no memory from month to month. So, as long as you keep paying down your current charges and don't add any additional, your score will be headed in the right direction. And your score is only really important if you are applying for new credit or loans. In your case, you probably should do that, so the temporary dip in your score due to utilization won't matter much.

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I'm debating closing cards as I pay them off - just to curb getting myself in the same situation. I'm sure that will hurt me credit-score wise but like you said I won't be applying for anything anytime soon so I wonder if it's a worth-it sacrafice. 

[KRF]

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@Wandering wrote:

DTI = Debt to Income
Only Debt or Income effects DTI

You are questioning "Utilization" (UTL/UTIL)
Your Total CL was $52600
Your Total CL is now $37600

Using 90% UTL on the cards you posted

Your aggregate utilization with the 15000 Discovery was
52600 CL = 64.33%

Your aggregate utilization without the 15000 Discovery is
37600 CL = 90%

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Which in turn hurts my score, yes? Honestly kicking myself but at the same time.. I might just end up closing cards I pay off as I do not want to be in this situation again. Short-term pain for long-term gain. 

[Wandering]

As you pay them off, cut them in 3x3MM pieces to make a cool collage for your wall. (I.E. Don't use them)

If you close them as you pay them off you will keep your UTL high and your score down.

[KRF]

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@Wandering wrote:

As you pay them off, cut them in 3x3MM pieces to make a cool collage for your wall. (I.E. Don't use them)

If you close them as you pay them off you will keep your UTL high and your score down.

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Thank you. Will do.