How many point you lose if you close unused credit card?

Question

How many point you lose if you close unused credit card?

Answer 1

Depends.  How old is this credit card compared to your other cards?  How large is the credit line?

The credit bureaus keep their credit scoring formulas secret, but generally speaking, older credit is better.  Larger line of credit is better.  So if you are canceling the card when it's your best card, you may lose a few points.

Also depends on your debt load.  Your score takes into account debt to credit ratio.  If you suddenly lose a large amount of available credit and your debt stays the same, you may lose some points.

Answer 2

Usually nothing.

Answer 3

It depends.  If you have too many open accounts, it may help you.  If you close an account you've had for a very long time, it might hurt you.  The "rules" are kind of finicky, so it's not so easy to say.

Answer 4

Hi there,

The difficulty with credit card debt is that it can take so long to pay it off that you just get almost bored and spend again. Most people find it hard to live within their means and not get further into debt or back into debt.

I can recommend starting to buy everything with cash - I'm telling you, when you see those bills going through your fingers you will really cut back on your spending! It's far too easy to spend money you don't have with a credit card.

You have to get rid of your credit card debt. Either get a consolidation loan or consolidate your cards to ones with zero or low rates of interest. Once you have done this you MUST get rid of your old cards - cut them up and destroy them otherwise you will be tempted to spend on them again and get into even more serious problems.

You really can get out of credit card debt but it is going to require some discipline and self control and maybe even a five year plan, but once you are out of debt you will feel a new found sense of freedom!

Hope that helps, but please let me know if you need any more info :)

Answer 5

The link below contains an article on the "dos and don'ts" of closing an unused credit card.  After reading it, you may have a better feeling as to what might be right for you.  Unfortunately, there is no pre-set amount of points for one credit card as the measurements for calculating one's score varies from person to person and institution to institution.

http://content.truecredit.com/sites/Lear...

Answer 6

It's hard to say how many points you could lose. A large part of your credit score is from how much credit you have available. You should also try to keep your oldest credit open since closing it will change how far your credit goes back once the account is dropped.