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Menmm

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How does closing 2 of 3 credit card accounts change my credit score?
I've had 3 credit cards for over 10 years, payment history is good, credit score in the 720 range. My 2 cards with the lowest balances are now paid off and my one card has a $10000 balance with a $15500 limit. I'm wanting to make the most positive change, what do you suggest?

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Closing Old cards WILL Drop your score

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Never close old credit cards. If you don't want to use them, Put them away and save them for an emergency if needed.  (consider them as part of your emergency fund, Which should be 100% to 150% of your annual income)  

Closing 2 cards with 10 years history could hurt your score by 100 points or more.  The age of your accounts is one big factor in your score so keeping those old cards is helping your score more than you think.  

My rule of thumb: Old cards that chage interest and have a 0 balance should be put into a rotation. Use one card for a month for daily expenses that you plan on paying off each month. Then go on to another card.  Using cards at least once or twice a year is enough to keep the accounts open and reporting.

You would also benifit from getting that balance as low as possible.  Great Credit scores are based on High credit availability (total of your CC limits) and low Utlization (total that you owe)  and keeping that below 30% of the total availbale.  

Good luck  

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DO NOT CLOSE CARDS!!!

The credit score is based partially on how much credit you have been granted (the more, the better), how long you have had the accounts, how well you pay (on-time payments are importanat) and usage, which should ideally be at 10% or less.  Paying accounts in full when the bill comes in is a smart way to use credit.  Right now you have a 65% usage on the one card with a balance.  That is way too high.  You are paying interest on that amount and unnecessarily paying interest is foolish. Get that balance paid in full as quickly as possible.  Please re-read the articles on this site so you can better understand proper credit usage.  It makes a big difference when you do. 

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