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mack1915

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opened a new acct. closing a old one
i just open a new acct. with cap- one with a lower a.p.r. i intend to close the old acct once the balance is 0 i don't want two credit card from them will this be a problem to my credit score?

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Helpful to 8 out of 8 people

Yes, closing the old account will hurt your credit score.  It is better to use it once a year for something small, pay it off before interest kicks in.

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I agree 100% with Addison.  The only ones I close, if I don't use them, are cards with annual fees...like the old rebuilder cards I had.

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Yes it will drop your points.

Helpful to 4 out of 4 people

   Do you need to have old credit account open? it depends: If there is a onual fee-call and ask if they can do samething about, if negative- say If nothing can be done, you want to close account (work in my case, they remove annual fee). if still nothing - close account - not need to pay extra...

   If there is no annual fee - stay with account and use ones a month to not let statement go at $0 (pay statement balace every time). In this case will be report from 2 accounts about good payment history and this is good.

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yes and no

Helpful to 2 out of 2 people

closing the old account will hurt you and drop your credit average age history. But if you have 10 or more forms on credit established your credit age average can absorb some of the damage because its based on more than a few credit accounts. But if you close it and its not negative it will stay in the amount of credit lines you have had for several years. Which can actually show you have good credit habits without being over extended account wise. So its a yes or no factor. It really depends on how solid your current and past credit history is.

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Helpful to 1 out of 1 people

Mack,

My recomendation would be to pay off the balance of the card and keep the account open. Once that is done, use the card once a month for 1 or 2 small purchases, making sure to pay the balanace in full every month. There are a couple of things this will accomplish for your credit. First, It builds credit history, which is one of the factors in your credit score. Secondly, using less than 30% of your credit limit will have a positive effect on your credit as well. Closing the account will have a negative effect on your credit.

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