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wababashaw

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why does your credit go down when you close your account

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Each credit account is given a credit limit, say $500.  If you have 5 accounts with such a limit, you have been granted a total of $2500 credit, and part of your credit score is based on how much trust you have been given, which IS the amount of credit you have been granted. The more credit you have, the higher your credit score.  Close an account, you remove that account's credit limit from your total and thus lower your credit score.

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