(Closed) Credit score & closing accounts

posted 6 years ago in Money
Post # 3
Member
2286 posts
Buzzing bee
  • Wedding: Central Park

I would get a real credit check first. Also, closing the account can hurt your score because now you have the same amount of debt but less available credit so it makes your percentage of debt increase. 

Post # 4
Member
2023 posts
Buzzing bee
  • Wedding: May 2013

Closing a new account (less than a year old) hurt my credit score.  It was a company credit card (in my name) that they gave me with an internship – and when the internship ended, they closed the card.

Post # 6
Member
7437 posts
Busy Beekeeper
  • Wedding: February 2013

It will hurt your credit score if you close them. Better to just leave them open and keep a very low to no balance on them in comparison to your credit limit on them.

Post # 7
Member
3305 posts
Sugar bee

It will not hurt you to close those new accounts IF you do not have balances on the accounts you are leaving open. They are calculating your current debt to available credit ratio- You want that ratio to be lower for your credit score- the more available credit you have versus the amount of credit debt you owe is better.

I use CK and compared my score with them to a credit pull report – my actual score was higher.

Post # 8
Member
2286 posts
Buzzing bee
  • Wedding: Central Park

The quickest way to boost a credit score is to finance something you normally buy (groceries for example) and let some of the balance roll over so that you pay a bit of interest. Doing this every once in a while boosted my credit score way faster than keeping no debt (treating it like a debit card). 

Post # 9
Member
286 posts
Helper bee
  • Wedding: June 2013

I agree with the others, closing the accounts will actually hurt your credit score but since they are newer it will not hurt it as much as closing your old accounts. I have a bachelors in financial management and I work at a bank so I promise I know what I’m talking about. lol If you don’t want to pay the fee on the one card I would go ahead and close it but leave the store card open. Also, the credit scores that you listed will already get you the very best interest rate on a home loan possible. That is if they are the real scores, it is very rare for some one to have an 888 FICO score. Most banks look at an 800 as a perfect credit score. But the very best and fastest way to raise a credit score is to pay any credit card balances and leave the card open. I hope that helps! 🙂

Post # 13
Member
2286 posts
Buzzing bee
  • Wedding: Central Park

Because they like you paying interest. That’s how they make profit. The worst things you can do for your credit score is have too much debt, pay things late or miss a payment, or have zero Debt. Using the line of credit means it reports in your favor if you charge something small and pay it on time, letting a few dollars roll over so they can collect 12 cents in interest. 

Post # 14
Member
8471 posts
Bumble Beekeeper
  • Wedding: July 2012

Wow.. I find this interesting.. I have never paid minimum on ANY of my credit cards, (I pay every one of them in full) and my three scores are all between like 810 and like 832… I don’t have the score in front of me now that I’m at work… But I find it interesting that your score boosts when you pay minimum.

Post # 16
Member
8471 posts
Bumble Beekeeper
  • Wedding: July 2012

@kay01:  Yay!  Yeah…I just don’t see a point in not paying it all off when I’m going to just have to eventually pay it… Plus I just don’t want any extra bills which is what I’d consider that.

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