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Lynnnnnnnnn

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Would closing a credit card affect my credit score?
I have a credit card that I don't use often. I do not like to hold too many cards and this one I got because the store assistant said it is only a membership card. I use this card maybe twice a year. I heard rumors saying closing a credit affects credit card score. Is that true?

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Credit/debt ratio

simple answer: Yes it will.  Your score is partially based on your available credit to debt ratio.  Closing the account will lower your available credit.  If you don't use the card often and they don't charge you an anuall fee to keep it, then there is no reason to close it. It  also effects the age of your open accounts.  So it will hurt you more to close it than keep it.

Rule of Thumb: You want to acheive an available credit level equal to 1 year of income and never owe more than 1 month of income in debt.   This can take years to achieve but that is when you will get the best credit scores and better yet the best interest rates on Auto loans and Mortgage rates. 

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