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Question By
dkasradze1

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Would it affect my credit score if i didn't renew a credit card?
In about 9 months one of my credit cards will expire. A month before the card will expire, I will send the cc company a letter requesting not to renew my cc with them. Its a two part question. 1. Will that lower my cc score if I let the card expire, without renewal? 2. Will it also count as a closed account and will stay on file for two years, therefore lowering my cc score even tough i let it expire without prematurely closing it? By the way this is not my longest opened cc so it wont damage my credit lifespan. Thank you in advance.

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When you mean "renew", I suppose you mean you have to pay an annual fee for the card. If you don't want to pay the annual fee again next year, you'll have to close the account.

1. Yes, it will lower your credit score if closing the account because by closing the account,

a) it will shorten the average life of your credit

b) it will lower the utilization rate

These are two major factors affecting the credit score. However, if your card was not opened long ago, and the credit limit is not relatively high, I doubt it will have a noticeable imapact to your credit score.

2. As stated earlier, if you decide not to pay the annual fee for the upcoming year, the account has to be closed. A closed account will stay on your credit report for 10 years, not 2 years as you said. But since your credit file and score will change almost every single month, if you believe this account is not worth remained opened, then go ahead and close it. You can always boost your score on somewhere else.

Reply by
dkasradze1

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Thank you so much for the response, it was very helful. It was a citi diveded card for college students with no annual fee. So now i have 9 months decide whether it is worth it to close it. 

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