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Question By
bossladysunshine

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how does closing a credit card impact the credit score?

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Top Contributor
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your score will most likely drop

You would be loosing the "avilable credit" of its limit, as well as the number of open accounts and it will effect the "age of accounts" 

If you want to close an account you should replace it before closing. Apply for new credit if your scores are good enough, so you replace the Available credit and the number of accounts.  

Unless there is an annual fee to have the card, I suggest that you don't ever close accounts.  If there is no annual fee and you no longer want to use it, Cut up the card and let the account go un-used. It's better to let them close the account for lack of use than for you to close the account. It will keep reporting for 7 years after they close the account, probably 2 or 3 years after your last payment. That will help the age of your accounts and will show a perfect payment history even though you haven't used it.

Good luck

Reply by
jemkarma

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Any published material to support your claims? I'm very curious about the impact distinguished between an account closed by creditor due to inactivity versus an account closed by consumer. I am also curious if any research could distinguish the length of time a creditor reports history based on the closing party.

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