Once you open a credit card account, is it ok to later close it? How does switching a credit card account affect your credit score, especially if there is a gap between when you close and open a new one? Does this reflect anything about you to those who will pull your score?

0
0
Marked as spam
Posted by Lillian White (MONEY FORUMS: 5, Answers: 0)
Asked on November 9, 2015 11:37 am
93 views
0
Private answer
One of the contributing factors to your credit score is the proportion of credit used (numerator) versus credit available (the denominator). If you cancel a card, you reduce the denominator and might reduce your credit score. If that isn't an issue for you, you can cancel the card. However, unless this card costs you money to keep (like the airline cards) it is probably better to cut it up and leave it in a drawer if you don't want to use it. The credit card company might end up canceling it anyway if the account goes inactive.
Marked as spam
Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: November 9, 2015 2:33 pm