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To successfully close an account, you must first have a zero balance on said account. Otherwise, you will still receive bills on that balance, which can and probably will accrue late charges.

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โˆ™ 2005-12-12 06:12:15
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Q: If you close your account with a balance will this hurt your credit or your credit score?
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If you close open accounts will your credit score go up?


What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?

I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).

Does transferring balances effect your credit score or is it reported?

== == Yes, when you transfer a balance you are required to close that account. Closing an account decreases your score up to 20 points. You then increase the balance of a new account. Opening a new account decreases your score up 20 points. If you have a balance on an account that is already open and your transfer more money into that account you are increasing your balance; which will decrease your score up to 20 points. So, be careful with this process, and be aware of the affects.

Will your credit score drop if you close a zero balance credit card that has been open for only four months?

There are many factors in credit scoring. Closing an account should not make it drop in score. Especially if it is a small amount of credit available.

What does transferring credit card balance to new card do to credit?

Generally, after two (2) months, the balance transfer from one card to another only minorly impacts one's credit. The key is the additional or new account and the utilization of the line on the account. If you transfer a balance to a NEW account as part of the application/onboarding process, your credit score will be reduced. If you transfer a balance to an EXISTING account that you don't use regularly, your credit score will be reduced. If you transfer a balance to an EXISTING account that you use on a regular basis, your credit score will either remain the same or be reduced.

Do you keep or cancel old credit cards with no balance on them Why?

Keep them. This will raise your credit score. Having an active account that you do not use is an excellent way to raise your credit score.

If you close an account will it improve your credit score?

Closing accounts can actually lower your credit score. The reason is that a portion of the score is made up by considering the amount of credit available to you versus the amount you are actually using. For example, if you have a credit card with a $10,000 limit and a $5,000 balance you are using 50% of $10,000 available. If you pay off the $5,000 and leave the account open you are using 0% of $10,000 available and that helps your credit score. If you pay it off and close the account the available credit goes to zero which is worse for your score. Another component of your credit score is how long an account has been open, so you're better off having the same account for years rather than closing an older one and opening a new one. If you have too many accounts and really want to close some of them it's best to close the newest ones first and hang onto an account with a high credit limit and a good payment history. Closing any accounts will likely lower your score temporarily, but it will bounce back over time.

If you close a checking account wll it hurt your credit score?

Checking accounts are not normally reflected on a credit report.

When an item goes off your credit report does your credit score increase?

When a derogatory item is removed from your credit report, them yes, your score increases. If you have a credit account with no derogatory items (late payments) and you close it, then your score is likely to decrease.

Does cancelling a credit card affect your credit score?

Yes, canceling a credit card always reduces your credit score. It never improves your credit score if you cancel a credit card account. If you have had the card for more than 2 years, or if you have a substantial amount of available credit at the time that you close the account, then the reduction in your credit score is even greater. However, if it makes sense to you to close the card, and you do not plan large purchases in the near future, your credit will recover without your feeling the difference.

What is excessive amount owed for an account on a credit score report?

The "excessive amount owed" is a phrase used to indicate that a particular account is over 30% utilized. Utilization is the balance of the account divided by the credit line. SO, if you have a $2,000 balance and your credit line is $3,000, your utilization is 67%, which would trigger an "excessive amount owed" in a credit score explanation.

Does carrying a balance on a credit card effect a credit score?

Yes but not significantly, unless it is a large amount, close to the maximum limit.

Does closing a credit card with a balance affect your credit rating?

Absolutely!!! Your credit score would go down and interest might be charged. Would be more of a lose for you. Its better to close it with a paid balance!

You getting offers to add credit cards and obtain great rewards Does it hurt your credit to open these cards obtain the rewards pay off the balance and close the account?

Yes, having your credit pulled can lower your FICO score. Which is the score on your credit bureau report used in some cases to determine your credit worthiness. Each time you apply for a new account your credit is pulled whether or not you are approved. Closing accounts can also have a poor effect on your credit report.

Should one cancel a credit card after paying it off and how does this reflect on their FICO score?

Just to add a little to the below answer; if the credit card in question is a fairly new credit card say opened in the last 12 mos or so, then I would advise to close it. If the account has been opened for a longer period of time, leave it open with a zero balance. Your credit score is not only derived by the balance vs the limit but also the length of time the account has been open and in good standing. Cancelling cards may not always be a good idea. Your credit score is based on several things, one of which is your available credit to current debt ratio. If you've paid of a card, it's probably a good idea to not make more charges on it, keeping it available as credit. That will show that, even though you have available credit, you're responsible enough not to use it all. It is better to cancel a card with a 0 balance than to close an account with a balance.

Will paying an old closed account raise credit more than paying an old open one?

== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.

If your credit card balance is close to your credit limit does that hurt your credit score?

ANSWER Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.

If you are specified as an authorized user on a credit card account that is not a joint account can your credit score increase?

No, only the primary cardholder's credit score is affected.

You have 2 credit cards that are almost maxed out Will your credit score raise if you pay half of the balance of each of them or should you pay one completely off and still have the balance on the oth?

Your score is like a report card, it takes time. Payment updates, opening a new account or closing an account could cause your score to fluctuate. If you plan on keeping the card after paying it off, this could help increase your score because it will show that you have an available line of credit. Having bank card accounts with a valid credit limit can have a positive impact on your credit score.

If you are removed as an authorized user on a credit card how does that effect your credit score?

It depends on if the account was good and helping your score or a bad account that was holding your account down. Removing a good account cold lower your score.

Do you still have growing interest when you close a credit card account to pay it off?

If there is A ballance still owed on it then the interest is still being billed to the ballance, If you have not closed the card account,,,,,,,,,,,,,,,,,,,,,,,,,,,,DO NOT CLOSE IT UNTILL ITS PAID IN FULL. That is terrible for credit score.

If you transfer all your credit card balances into one account would that affect your credit score negatively?

It may. Credit scores are based on ALL the information showing in your credit report at the time they are calculated. So any change, including balance transfers can impact your score.

Will continuing to transfer balances to new credit cards when the 0 percent apr expires affect your credit?

The interest rate, payment amount, items purchased, transfers are among factors which have no bearing on your credit. These things may affect your bottom line, but your credit score reflects other activities. For instance, opening a new credit card would generate an inquiry which MAY impact your score. Having a new account MAY impact your score. The proportionate balance on the new account MAY impact the score, (ie., you transfer a $2000 balance from an account with a $10,000 credit limit to an account with a $2500 limit). All of the factors, including what you are paying in interest rates, transfer fees and how this activity affects your credit need to be taken into consideration before you open a new account.

After canceling my only active credit card how soon should I apply for another credit card without damaging my credit score?

you just hurt your score a little by closing a good account, it is always best to just leave the account open and just keep a zero balance and sock draw the card.

If you close a credit card that has a balance on it will it hurt your credit score oppsed to waiting until the balance is paid in full?

Canceling cards usually does lower your FICO or credit score; if you have a balance on a card, pay it off or transfer the balance to a lower-interest card. Then take scissors and cut up the old card (and any new ones they send you in the future). But then you don't need to actually cancel it.

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