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
HNC1648

0 Contributions
0 People Helped
How many points will be taken away from my credit score by closing an credit card?
I would like to close one or two credit cards and I am curious to how much that would reduce my credit score and how bad of a negative impact it would incur?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
740 Contributions
796 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

if its not your oldest card....as long as the balances are $0 and the amount used on your cards left open is under 20% it should actually boost your score because your age of accounts will go up and your utilization is still under 20% your ok.....now if its your oldest account thats hard to say given we don't know how long you had the card more then 3 years it could be minimum 20 points max 40 points it depends on what rest of credit file looks like and again only if this is your oldest card (rule of thumb don't close your oldest account unless your 2nd oldest is atleast 5 years old or 6-9 months after your 1st card to avoid significant credit loss)

Top Contributor
1884 Contributions
3680 People Helped

Why close it.

Most of the financial types I have dealt with recommend a safety net of at least 50% of your annual income. A mix of savings, liquid assets like gold, and revolving credit. So unless your sitting on gold or cash then I would suggest hanging onto that card for emergencies. 

If you plan on putting a card away, here's a great truck I use with cards that I no longer use on a regular basis. (I only carry one card at a time) put a recurring charge on the card. Something like the netflix or electric bill. This will show utilization, and paying the card as soon as the bill comes in will incur no interest. Plus your using money that's already in your budget. 

Some cards will suspend your account if you don't use it often enough so check the terms of service. 

Its never bad to tuck a card in a drawer and hang on to it in case you need it. 

Results 1-2 of 2Results 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.