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Anon213

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Do closing retail store cards, like Macy's card, affect your credit score negatively?

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It depends on two things

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Hey Anon213! Think of closing a store credit card like closing any other credit card. So two things will be impacted whenever you close a credit card. 1- Your total credit card limit will decrease by the card's amount. If you're already utilizing a high percentage of your available credt, closing the card could hurt your score. If you're using a small percentage of your available credit and your store credit card doesn't have much credit limit to begin with, your score would be less affected. 2- The age of your credit history will change. If you've had this store card open for some time (like several years), it's best to keep it open in order to continue increasing the age of your credit history. You don't have to use it often at all. In fact, if you use it once a year for any amount, the store should keep the card open for you. However, if you've had this store card for a short amount of time, it won't affect the age of your credit history too much. Hope this helps. 

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It will affect your credit score

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Last week the bank closed my credit card account in which I had a limit of $6500 and my credit score came down by 6 points. 

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Simple Answer ,  YES!

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Helpful to 2 out of 5 people

A revolver is a revolver.  The main immediate impact due to closing a revolver is the change to your revolving utilization.  You can do the math to determine the impact to revolving utilization from closing a revovler.  Revolving utilization is simply balance(s) / limit(s).

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Reply by
takeshi74

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Despite what Credit Karma indicates, AAoA is not immediately impacted by closing an account.  Closed accounts on your reports continue to factor into AAoA as far as FICO is concerned.  Most creditors use a FICO scoring model.  CK actually provides AAoOA.

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