Closing out credit cards, how did it affect your score?

[ah32]

I know I should keep these cards open, but now that I've been approved for two cards without the monthly and annual fees, I can't in good conscience keep them open.  Have you closed out a card and did your score decrease? I have two cards I would like to close because the annual fee is due.  Really bad idea? It will save me about $120 to close them.  I'm hoping the two new cards will help me from this point forward, but I don't want my score to drastically reduce.

[Bruiser]

it depends how old they are

if they're old cards, then it might drop your score by quite a bit

it also factors in the average age of your cards

[ah32]

One I've had for one year and the other card for two years.  They are in good standing and have been since I opened them, so they will still benefit me.  We shouldn't be punished for closing crappy fee charging cards.

[Bruiser]

i agree,..

i've read on here that closed accounts still count towards your score in age, but not as much as an open account

what's your oldest open card?

[Anonymous]

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ah32 wrote:

I know I should keep these cards open, but now that I've been approved for two cards without the monthly and annual fees, I can't in good conscience keep them open.  Have you closed out a card and did your score decrease? I have two cards I would like to close because the annual fee is due.  Really bad idea? It will save me about $120 to close them.  I'm hoping the two new cards will help me from this point forward, but I don't want my score to drastically reduce.

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7) Closing a credit card is almost never a good idea.  A significant part of FICO is the length of credit history, and the number of positive tradelines.  While closing a credit card account will not affect the length of your credit history (the account will remain on your CR), this act will reduce the number of open positive TLs by one.  If an annual fee is bugging you, negotiate to have it lowered.  A good rule of thumb is that if your FICO has risen 30 points or more, and you have not accumulated any more baddies in the year since you last paid the fee, you are in a position to negotiate a lower fee and better terms.

Taken from the post by our moderator TheNewWorldMan.  That should help you make up your mind.

[ah32]

I guess I would rather close them regardless of whether it will hurt me.  If it does, well, then I'll just have to take it.  These cards have cost me enough money.  It bothers me that these card companies know they can get away with their montly fees, annual fees, and startup fees just because we messed up.

[chartley3]

With those ages I wouldnt worry about closing them especially if you just got approved for 2 new ones to replace them and with higher CL's. Just make sure you pay them off in full before you close them and get them to waive any BS maintenance fees.

[Tuscani]

The only area of scoring where closing an account can hurt you is in the revolving utilization calculations. While a closed revolving account with a balance is included in utilization, a closed account with a zero balance is not.

In the area of length of credit history, closed accounts are treated no differently than open accounts. That is, the length of history on a closed acct still gets counted right along with the rest of the closed account's history. In fact, the length of credit history gets counted for every trade line on your report, regardless.

So, the only harm by closing a revolving account is to the utilization percentage, while, in the long run, a closed account will be removed from your credit file after 10 years, which could lower your score at that time due to the loss of that history.

[ah32]

Thanks! I just activated and increased the line on my new Delta card, then called and converted to Blue.  Also, closed off card similiar to Premier and waiting for payment to apply on Orchard card before I close that card too.  Waiting on Hilton card and then plan to do the same.  Now that I've changed the Delta card to a Blue Cash card.  What should I convert the Hilton card to? Thanks everyone for your insight and experience! It's good to know the closed cards will only temporarily affect utilization.

[Tuscani]

I wouldn't convert the Hilton card. I don't think there is a AF anyway.