My Discover Card 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?

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 our credit score simulator to better understand how these factors will affect your credit score.

Back to All Credit Q&A