Janice: How many points are taken off your credit score when you cancel a credit card?
I have 3 different credit cards from my bank and I just learned that they will be charging annual fees for each one very soon. I have these cards only because one was first time card (no offers) The next one had point rewards and the newest one had cash back.
How many points will I lose from my “credit score”?
Is there a sequence of time I should be concerned about as well..Oldest vs. newest?
I have to cancel at least cancel one or two.
P.S. I am good standing
i am in good standing with all 3.
Answers and Views:
Answer by Judy
Closing accounts hurts your rating in two ways.
1. Closing your oldest account will wipe out part of your history.
Length of credit history is 15% of your fico.
2. You will be reducing your overall available limit on your cards.
BUT – If you are paying fees – close them.
There are plenty of cards out there without them.
How long until they will start charging you?
I would open a new credit card before closing my oldest account.
Remember for pristine credit scores never carry a balance.
Pay your bill in full each month and get 800+ scores.
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There is not now, nor has there ever been, a fixed number of points per card.
It is also a myth that deciding to cancel a card will always lower your score. In many cases, it raises your score.
If an account was helping your score and that stops because you closed it, then your score drops by however many points that particular account was previously elevating your score.
If an account was hurting your score and that stops because you closed it, then your score rises by however many points that particular account was previously lowering your score.
Keeping at least one old account open will help your score. Do not close your oldest account. Close as many of the others as you want.
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