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I'm about to get an APR hike on my credit card. What happens if I just let the account close?
My credit card company recently sent me notice they will be increasing my APR from a fixed rate to a variable rate. If I don't agree, they will close my account. My question is: what effect will this have on my credit score?
Asked by
DuelleMarley
1 year ago
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If you currently have a good credit score, several credit card accounts all with a long history and high available credit, this will have minimal impact on your credit score. If you have anything other than the above, the impact of closing one of your credit card accounts will most probably lower your credit score from 5-30 points.
Closing your credit card account can impact your credit in three ways.
1. You will have lower available credit.
2. You may have a shorter credit history if the closed account happens to be an older account.
3. Your credit card utilization may increase.
Each of the three can have an impact on your credit score. You can use the simulator here at CK to better understand how these factors will affect your credit score.
chuyskywalke 2 months ago
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In this situation, I wouldnt close the account, I would just leave it open and not use it; or just do an occasional small purchase and pay it off within the statement period.
mlaphand 1 year ago
This happened to me too. It just makes me mad. How are we going to help the economy when companies do things like this.
JOHN19437 11 months ago
Depending on the age of the account, you may see your credit score decrease. Your best option may be to keep the card open but transferring the balance to a lower APR card.
AppleRules 2 months ago
If you currently have a good credit score, several credit card accounts all with a long history and high available credit, this will have minimal impact on your credit score. If you have anything other than the above, the impact of closing one of your credit card accounts will most probably lower your credit score from 5-30 points.
Closing your credit card account can impact your credit in three ways.
1. You will have lower available credit.
2. You may have a shorter credit history if the closed account happens to be an older account.
3. Your credit card utilization may increase.
Each of the three can have an impact on your credit score. You can use the simulator here at CK to better understand how these factors will affect your credit score.
chuyskywalke 2 months ago