What effect closing of my credit cards will have on my creit history/score?
and what is the difference between closing account and closing credit card?
- GreeneyedCowgirlLv 51 decade agoFavorite Answer
Closing your credit cards will lower your credit score ~ because this takes away your available credit. If you have several credit cards, you can close a few of them, but it will drop your credit score to a certain degree. You can rebuild it by making payments on time for your other accounts. Closing accounts, i.e., car loan, mortgage. is when you pay these accounts off, it shows as paid off ~ not closed.
- bereftcatLv 41 decade ago
The 'rule of thumb' is that the fewer credit cards you carry, the better off you are. So, closing accounts when the balances are paid off, improves your credit score! Also, you can have a FREE credit report sent to you!
- Anonymous1 decade ago
It's best to pay off the cards and keep the accounts open with no outstanding balances. That will keep available credit instead of closing them and having no available credit (the acct. is closed). Itt then keeps your score up. Some people tthink that having a card with a limit of $2000.00 and owing $1800.00 on it is good credit, no. The amt. available is good, the amt. you owe is bad if you owe too much.