- How It Works|
- FAQs|
- Help
- Log In to your account |
- Sign up now for free!
Credit Advice
Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!
Question
Share this question with others:
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
2 years ago
Flag this Question
Best Response
What’s been voted most helpful!
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 1 year ago
4 responses
- Prev
- 1
Reply To This Question
The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.
Let the community lend a hand!
3 Most Recent Questions in Credit Scores
why does child support have such a negitive affect on my credit
0 Responses
Asked by hh08
under Credit Scores
Credit Card Offers Just For You
These are the most popular credit card offers from Credit Karma members with credit similar to yours.
Orchard Bank Visa Cards
- Acceptance at millions of locations including website purchases and reservations
- Your account information is updated and at your fingertips 24/7 so you can manage it your way
- Email and text messages to remind you of your upcoming payment due date with online enrollment
Orchard Bank Classic MasterCards
- Acceptance at millions of locations worldwide, including website purchases and reservations
- Your account information is updated and at your fingertips 24/7 so you can manage it your way
- Email and text messages to remind you of your upcoming payment due date with online enrollment
Capital One® Secured Mastercard®
- Get the credit you need with no processing fees or application fees
- Automatic reporting to the 3 major credit bureaus
- Track credit with access to your credit score and other tools
Copyright© 2007-2012 Credit Karma™, Inc. Credit Karma is a registered trademark of Credit Karma, Inc. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Karma are the property of their respective trademark holders. This site may be compensated through third party advertisers.
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 2 years 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 2 years 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 1 year 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 1 year ago