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bnmsba14

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Closing Credit Card With Low Utilization Impact
I have a credit card that I do not use. I understand that closing an account impacts your score because it changes age of credit and utilization rate. This particular card has a low limit (about 4% of my total limit), and an age that is younger than my average. I did the math, my utilization would go from 7% to 8%. So because this card is younger than average, and has very little effect on my utilization, what impact would I expect to see on my score if I close it? Thanks!

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It will depend more on how many open accounts you currently have on your reports. Keep in mind that FICO will factor in closed accounts to the "average age of accounts". If you only have a few open accounts being reported then you may want to reconsider closing this card, but if you have a bunch of accounts, then you should be fine.

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