What happens to your credit score when you cancel credit card?
Posted by | Posted in Credit Help | Posted on 25-06-2010-05-2008
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say you are in good staying, never was late. always payed the balance. but you have too many credit cards let’s say. so when you cancel that credit card. what happens to your credit score? Does your credit limit you had for that card get erased from the records? after all those years of building the credit limit to help the credit score. what happens to it? and what happens to your score? i’m just curious.
There are a lot of factors affecting your credit score. Let me just break down what you mentioned and identify whether they would be good / bad for your credit score.
Never late / always paid the balance – Definitely good
Too many credit cards – This, more often than not, lowers your credit score… especially when the total card balances take up too much of the total credit line given to you.
If you are looking for the free credit score national site, check out this site
http://Free-Credit-Score-National.com/
Here you can check your 3-in-1 Report from all three credit reporting agencies and your credit score rating for free, fast and secure.
Hope this help,
It will go up! Most people have too much revolving debt, which actually lowers your score. Close the ones you don’t need.
If you have paid it off and don’t use it, canceling can actually lower your credit score.
Good article on the subject here:
http://www.creditcards.com/credit-card-news/heristad-canceled-credit-cards-and-credit-score-1294.php
You will take a hit to your credit score.
If you close a bank account, you will take a hit to your credit score.
If someone runs your credit, whether you asked them to or not, you will take a hit on your credit score.
There are many, many ways someone can lower their credit score. Most people think if they cancel their credit cards, their score will go up. Actually the opposite happens.
Donna
In my opinion, having too many credit cards wouldn’t make a good impression on you either. I have to agree with your decision of canceling one credit card. But really, I’m no expert on this.