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

Posted in Credit Cards
Profile Image

Question By
1dodgersfan

0 Contributions
0 People Helped
Does closing a credit card effect my credit score?
I am considering closing out my American Express card, but I do not know how this might effect my credit.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
61 Contributions
36 People Helped

Re: closing an account

Depends. 

1. The ideal number of credit cards to have open is 4-5.  If you have fewer cards, you may want to leave it open.  

2. Is this one of your oldest cards?  Or is it one of your newest?  One of the factors in calculating score is the average age of open accounts.  So if you close your oldest account, the average age shortens and it could hurt your score.  Closing your newests card will increase your average age and may raise your score.

3.  Does the card have a balance?  If so, do NOT close it until it's paid off.  Having a balance on a closed card creates a negative utilization rate and hurts your score.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

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.