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Will closing my CareCredit card damage my credit?

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Anonymous
Not applicable

Will closing my CareCredit card damage my credit?

I currently have a CareCredit line that I’m about to pay off fully. I know that I’ll never use it. I only got it because I needed a root canal and couldn’t afford to pay over $900 in one sitting for it. I opened the account seven months ago and now that I’m paying it off soon, I don’t know if I want to keep it open since I know I won’t use it. Will it damage my score if I close it myself?
Message 1 of 13
12 REPLIES 12
Anonymous
Not applicable

Re: Will closing my CareCredit card damage my credit?


@Anonymouswrote:
I currently have a CareCredit line that I’m about to pay off fully. I know that I’ll never use it. I only got it because I needed a root canal and couldn’t afford to pay over $900 in one sitting for it. I opened the account seven months ago and now that I’m paying it off soon, I don’t know if I want to keep it open since I know I won’t use it. Will it damage my score if I close it myself?

I wouldn't think so, if you're paying the balance in full and then closing the card of your own volition. The card will continue to appear on your account for 10 years after closing, showing as having been paid in full and then closed by you. Since you opened this card very recently, closing it shouldn't hurt your average age of accounts (AAoA).

Message 2 of 13
SouthJamaica
Mega Contributor

Re: Will closing my CareCredit card damage my credit?


@Anonymouswrote:
I currently have a CareCredit line that I’m about to pay off fully. I know that I’ll never use it. I only got it because I needed a root canal and couldn’t afford to pay over $900 in one sitting for it. I opened the account seven months ago and now that I’m paying it off soon, I don’t know if I want to keep it open since I know I won’t use it. Will it damage my score if I close it myself?

No closing it won't damage your credit.

 

You will lose that limit from your utilization, and you will lose the card from your average age of accounts once it falls off your credit reports, but it's possible neither of those events would affect your score at all.

 

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 3 of 13
SouthJamaica
Mega Contributor

Re: Will closing my CareCredit card damage my credit?


@Anonymouswrote:

@Anonymouswrote:
I currently have a CareCredit line that I’m about to pay off fully. I know that I’ll never use it. I only got it because I needed a root canal and couldn’t afford to pay over $900 in one sitting for it. I opened the account seven months ago and now that I’m paying it off soon, I don’t know if I want to keep it open since I know I won’t use it. Will it damage my score if I close it myself?

I wouldn't think so, if you're paying the balance in full and then closing the card of your own volition. The card will continue to appear on your account for 10 years after closing, showing as having been paid in full and then closed by you. Since you opened this card very recently, closing it shouldn't hurt your average age of accounts (AAoA).


There's no guarantee it will stay on your reports for 10 years. I recently had 5 closed accounts, closed for a year or less, drop off my EQ report.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 4 of 13
HeavenOhio
Senior Contributor

Re: Will closing my CareCredit card damage my credit?

Welcome! Smiley Happy

 

I closed a seven-month-old CareCredit account last year. If it were to drop off my reports tomorrow, my account age stats would improve. Smiley Happy

 

But the answer is that there should be no significant effect on the OP's (original poster's) score as long as utilization is in check and as long as there are still other open cards. @alewhitehead, how many cards do you have?

Message 5 of 13
Anonymous
Not applicable

Re: Will closing my CareCredit card damage my credit?

Hi!

I currently only have one other account with Capital One.
I have student loans and a car note aside from that
Message 6 of 13
Anonymous
Not applicable

Re: Will closing my CareCredit card damage my credit?

Since you only have 1 other card, it may make sense to throw the Care Credit card in your sock drawer and keep it open.  It won't hurt anything if you do this.  You never know, you may need to card again at some point for an emergency.  I'd recommend sitting on it until you get to the point where you add another credit card or two to your wallet, then close the Care Credit card at that time.

Message 7 of 13
HeavenOhio
Senior Contributor

Re: Will closing my CareCredit card damage my credit?

Three open cards are ideal for scoring purposes. For that reason, you may want to let CareCredit hang around for a while.

 

Usually, people are concerned about accounts dropping off of reports and affecting one's account age stats. Closed accounts count toward account age stats the same way open accounts do. And as mentioned, it's unusual that they drop off of one's report early. In your case, your accounts are likely to be close enough age-wise that it isn't likely to matter if the card drops off now, ten years from now, or somewhere in between.

 

That said, if the card is an annoyance to keep around, close it. You can work toward having three cards at a point when it's convenient for you. Even if your score drops a bit, the closed account will still be considered as part of your credit "experience" when it's time to apply for new cards.

Message 8 of 13
Kforce
Valued Contributor

Re: Will closing my CareCredit card damage my credit?


@Anonymouswrote:

Since you only have 1 other card, it may make sense to throw the Care Credit card in your sock drawer and keep it open.  It won't hurt anything if you do this.  You never know, you may need to card again at some point for an emergency.  I'd recommend sitting on it until you get to the point where you add another credit card or two to your wallet, then close the Care Credit card at that time.


+1,  With only 1 other card keep it open until you get a new card later.  As pointed out "Fico" likes to see 3+ CC for ideal scores. You are ahead of the game with student & car loans and can have a very nice "Fico" with only 1 card, so no need to rush into cards that you don't really need. Also no rush to close and shred cards just because.

Message 9 of 13
Anonymous
Not applicable

Re: Will closing my CareCredit card damage my credit?

How  do you know you'll never use it? Isn't that also the card you could also use a vet bill on if you have pets? What about more dental work someday? Just a thought. If there isn't a yearly fee it seems like something good to sock drawer in case of an emergency soemday. Sometimes you can get prescriptions that your insurance won't cover and you have to pay out of pocket for so you could also use it for that I would think.

Message 10 of 13
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