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Crossticklethefullmonty

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If I cancel a credit card and replace it with another does it impact my credit score?
I currently use an AMEX/Delta gold card. I pay my bills completely and have never paid interest. I would like to cancel this card and replace it with a different card. Will this effect my credit score?

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Swapping cards

You must consider the hit your score may take.

Part of your credit score is calculated by how long a particular line of credit has been open, what payment history it has, what is the credit limit of said card etc.

Your credit score can drop if the new account does not measure up to the history of the old card. For example, an account open for 4 years, in good standing, never placed in collections carries a higher value to your overall score than a new card with a higher limit. If you close a long term account you may see your score drop, again, depending on the history of the card and the length of time the account has been open. If there is a history of late payments (even if you made arrangements it is still marked as a late payment) or if your line of credit was suspended for any reason on that account then dropping that account for a fresh one with no history will overall help your score in the future.

If there is no monthly/annual fee, no balance, no interest, no bad history etc. keep the card until your new card has time and positive payment history on it. Then dropping the other account will not hurt your score as much.

Hope this helps.

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