What happens to credit score if you close a store credit card?
I have a few store credit cards (Macy’s, Banana Republic, etc) in addition to a major credit card. I want to cancel some of the store credit card, but I don’t know how that effects my credit rating. I think closing credit cards in general lowers credit scores, but what about those store cards?
Tags: banana republic, card, close, Credit, credit scores, happens, macy, score, store, store cards, store credit cards
Related Items
- How and why is my credit card affected when I open and close a credit card?
I see a great deal at a store to open up a credit card and get a prize or a rebate. If I want the big discount I open the credit card and then get th... - Can credit card companies close your accounts without warning? How does it affect your credit score?
I received a letter in the mail from Juniper (iTunes Rewards) stating that they have closed my credit card account due to inactivity. I opened the acc... - My credit card balance is over 50%. How long will it take my credit score to go back up?
Hi. I recently just got my first credit card ever and used it to make a $1600 purchase. The credit limit is $3000, so obviously I'm over 50% of the ba... - How long will credit score take to return to normal after opening a new credit card?
I recently opened a new credit card and noticed that my fico score plumetted 50 points after doing so. How long will it take for credit score to get o... - What is the easiest credit card to qualify for?
I have no credit/bad credit, and have trouble even getting a department store card. Isn't there a credit card that I can qualify for and work towards... - How to get a credit card with a damaged credit score?
I have a fairly low credit score due to a couple of charge-offs and a couple accounts in collections that I am not even aware of, but they are possibl... - How do I close empty credit card accounts?
I have recently checked my credit report and I realized I had several credit card accounts which were unused for several years running with a zero bal... - No credit, How do I start and what is a good credit card for a beginner\r?
I am 20 years old and after trying to get a card for a store I find I have 0 credit history. I have never owned a credit card and want to pick a good ... - How does credit card balance affect credit score?
How does this affect your credit score: Using credit card and always paying off balance right away Using credit card and paying off balance after you ... - What is the consequence for paying off your current credit card debt with a new credit card?
I have 2 credit cards and they're not even that much. I've been paying every month to reduce the balance but after interest charges, it seems to go st... - What is the best credit card to start my credit?
I recently turned 18 and im in a great living situation. i live with my dad, make about 1000 a month and im a musician. I wanted to buy a new bass and... - Is a secured credit card a good way to establish credit?
I have no credit history cause i've never had a credit card or borrowed money or anything and I want to establish credit now. well I applied for a cre... - What credit card out there has the easiest approval?
I have some credit, but not a whole lot. My credit score is 628. I also have a delinquncy with Chase, which I am trying to pay off now, but I want to ... - What is the difference between a credit card and a pre approved credit card or is there no difference?
I am looking to raise my credit score and I have been turned down buy credit card companies and I spoke with someone that said I could get a pre appro... - How much of my credit card do I need to have paid to improve my credit score?
When I turned 18 I knew I needed credit cards to grow credit. When I reached the $500 limit on my first card and the $2000 limit on my new card when I...
June 26th, 2010 at 5:03 pm
Just never close out your oldest credit card, or the one with the most credit. This erases your oldest piece of credit history and will damage your score substantially.
June 26th, 2010 at 5:05 pm
it makes no difference ,, your putting way too much thought into your credit score
(…..Suze Orman…..lol)
June 26th, 2010 at 5:24 pm
It wont hurt you at all. It’s better you closing them verse’s the credit card company closing it.
June 26th, 2010 at 6:03 pm
closing any credit card will hurt your credit rating i was advised not to close mine and to use then once every 3 months even if it is a small amount.
June 26th, 2010 at 6:52 pm
IDK if it effects the score, but when you close them, it goes on the reports as cancel/close and nobody states why. So other creditors think something went wrong……..disputes etc. It’s like when your forced to resign from a job. Well you go for a new car and some finance officer see it and doesn’t want to give you the qualified car loan. Maybe you’ll just take back the car and say you don’t want it anymore.
June 26th, 2010 at 7:27 pm
If you are not in default, DO NOT Close the accounts. The older the account ” In Good Standing” the better your score. Simply shred the card so you will not use it, but your score will go down if you close out accounts you have had for awhile.
Mike
June 26th, 2010 at 8:09 pm
If the card does not have an annual fee, never close a card, regardless of type.
By closing an open account in “Good standing” (& I am assuming they are), you are only lowering your utilization ratio. Pay them off & stick them in a sock drawer. They will only continue to age the account, helping your FICO score via “average age of accounts”.
If you do nothing else, check your credit report (you can get it for free from all three bureaus at annualcreditreport.com).
If you are insistent on closing these store cards, you can at least make sure to keep your OLDEST store card open. Never close this card, use it at Macy’s or where ever it may be every 6 months & keep it alive.
Unless they have an annual fee, put it in the sock drawer & let time work. If the creditor closes them for inactivity, they will stay on your report for 10 years as a positive account. If they stay open until your 90 years old, they still only help your score.
There is never a good reason to close a positive trade-line.
Aly
June 26th, 2010 at 8:20 pm
score drops a little not much
June 26th, 2010 at 8:29 pm
Private Label credit reports do not reflect as well on your credit report as major credit cards do and they typically carry much higher interest rates.
Closing an account will have a negative impact in the short term. The best way to build your credit score is to make payments on time, have no more than two credit cards period, and try to keep your balance to no more than 30% of your Credit Limit (50% max)
June 26th, 2010 at 8:31 pm
Part of your FICO score is based on length of credit history. Unless you have an annual fee, keep your oldest cards. Read about closing cards here:
http://myfico.custhelp.com/cgi-bin/myfico.cfg/php/enduser/std_adp.php?p_faqid=169&p_sid=tds3ijwj&p_lva=3
Also, part of your FICO score is based on your debt-to-credit ratio. So, if all your available credit equals $9,000 and you owe $3,000. Your debt is 33% of your available credit. If you close an account with $3,000 available credit, your debit is now 50% of your available credit. Read about that here:
http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx
While you are on http://www.myfico.com, click on Credit Education and read all the great stuff on that page.
June 26th, 2010 at 8:47 pm
i have similar experience, read it at http://1creditcardmerchantaccount.biz
June 26th, 2010 at 9:37 pm
Do not close the card cause it lower you available credit line. You also can use this service to pre-estimate future scores for different scenarios of credit card payments. – freecreditreport.sinfree.net
June 26th, 2010 at 10:24 pm
A bad credit rating is obviously a big worry – if you are unsure of what rating you have then you should get it checked out – I tried at http://www.expertzworld.com/credit-guide.php – it gave an accurate picture of my credit worthiness!
June 26th, 2010 at 10:40 pm
If you aren’t carrying balances on other credit cards, it won’t make much difference, unless it is your oldest account.
If you want to keep accounts open, be sure to use them every 4 months or so to keep them from being closed due to inactivity.
I recommend that you only keep store cards if you have some special purpose and actually use the account. If you do opt to close a credit card, do it via letter and request written verification that the account is closed and 0 balance. Keep your request and the verification in your “forever” financial file — just in case.