What effect does closing a CC account have?

Anonymous · ‎02-05-2008

Is it good or bad? I have more than enough cards and im thinking about closing an account with a high APR it was my first CC. It has a zero balance i use it one every blue moon for gas. I almost forgot i had it and was a few days late paying it because i forgot i had it since i dont use it that much. So would closing it have a negative effect on my credit score? So would it be wise to clsoe it or should i just toss it in my safe and leave it there?

llecs · ‎02-05-2008

Closing it could negatively affect your average age. If AFs are not an issue, I'd pull it out every three months or so to buy something small in value.

fused · ‎02-05-2008

Average-age is not impacted...please read the link in my siggy.

llecs · ‎02-05-2008

Ok, I'll concede that...I just had my oldest account fall off EX. Avg. age dropped by one year, but the score did not change any, like I thought it would. This acct was a closed, paid CC. Avg age was impacted but already closed.

OP could be impacted by utilization, though.

Message Edited by llecs on 02-05-2008 01:47 PM

Anonymous · ‎02-05-2008

llecs wrote:
Ok, I'll concede that...I just had my oldest account fall off EX. Avg. age dropped by one year, but the score did not change any, like I thought it would. This acct was a closed, paid CC. Avg age was impacted but already closed.

I think you're both right.

Average age is affected, but not until 10 years later.

I think fused is saying average age is not affected as soon as you close the account, like a lot of people think it is.

fused · ‎02-05-2008

cheddar wrote:

llecs wrote:

Ok, I'll concede that...I just had my oldest account fall off EX. Avg. age dropped by one year, but the score did not change any, like I thought it would. This acct was a closed, paid CC. Avg age was impacted but already closed.

I think you're both right.

Average age is affected, but not until 10 years later.

I think fused is saying average age is not affected as soon as you close the account, like a lot of people think it is.

Yes, this is what I meant. Even after 10 years, it's unlikely your scores would take much of a hit especially if you have other cards 10 years old or even older. My only consideration when deciding to close CC are the effects on utilization...I would NEVER close a card with a balance. Other than this, I don't agree with others who say you should only close CCs if they are costing you money. There are other good reasons to close CCs. People who can't manage their accounts well and those who are in abusive relationships with CCCs should consider closing some CCCs.