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nmccormick16

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How will closing 1 of my 3 credit cards affect my credit score?
This is the one I've had for the shortest amount of time (less than six months) and the one with the lowest credit limit. I've completely paid off the balance and I don't need it. I opened it when I was short on cash and needed a cash advance. I'd prefer to close it now that it's paid off because it charges a $40 yearly fee, even when I don't use it. I am keeping the other cards, one which I've had for two years, and the other which I've had for almost a year. I think this card is bringing down my average length of credit.

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I would only close it during the month just prior to it charging the annual fee. Keep it open for the credit limit until then. Only if it is charging the fee monthly would I close it right away.

When you close it it will raise your credit utilization, unless you have all the others paid off as well, but it might increase your length of credit. The extra credit limit has more impact on your score than the length of credit, IIRC.

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