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Gl09

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Credit score dropped tremendously after closing credit card
I had just started to build my credit score and had a pretty good one but I just recently closed a credit card from a former bank and it dropped my score by almost 80 points. I was wondering why this happened or if there is anything I can do about it.

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That is completely normal, especially if you only have a few accounts. Your FICO scores probably did not take that much of a hit though. Not much you can do about it now, but this should prompt you to do some reading about credit so you don't encounter anything like this again in the future.

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To piggyback on the previous answer, the reason is that your score is partly based on your available credit. So when you closed your account your available credit dropped by the amount of that cards limit. That can impact your credit utilization. For example, if your total credit usage is $5,000 and your total credit limit is $10,000 you have a 50% credit utilization. Say you had 3,000 credit limit on the card you closed, now your utilization increased to $5,000 out of $7,000 available or 71%.

Hope that helped

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