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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.

2006-09-10 05:56:30
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Q: Will your credit score drop if you close a zero balance credit card that has been open for only four months?
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If you close open accounts will your credit score go up?

NO! THE OPPOSITE HAPPENS, YOUR CREDIT SCORE WILL LOWER. KEEP YOU ACCOUNTS OPEN EVEN IF YOU HAVE A ZERO BALANCE. NEVER, CLOSE AN ACCOUNT IF YOU CAN AVIOD THIS.


If you close your account with a balance will this hurt your credit or your credit score?

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.


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.


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.


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!


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.


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).


Is 769 a good credit score?

A 769 is a very good score. You should qualify for all the best credit card, mortgage, and auto loan rates. For example: I have a 769 credit score, and the last credit card I activated offered 0% on balance transfers and 0% on new purchases for 21 months. After 21 months the remaining balance will then be only 11.90%, which is much lower than the 20%+ that many average credit consumers are forced to pay. Your good credit score allows you to pay less in interest and will save you thousands of dollars over your life time.


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.


Does being in good standing with a current credit card rise your credit score even though you still have collections and chargr offs?

Keep in mind that what you have done in the last 24 months is what considered most. You can be in good standing with your credit card--but not using it properly will still affect your score. As Phil Turner said in his book titled "The Credit Bible" "If your credit card balance is over 30% of the balance, this will affect your score." Those collection account and charge offs will hurt, but not as much in 24 months.


How can a repossession with a zero balance affect a credit score and can it be removed?

A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.


How long do i have to have a credit card before i get a credit score?

6 months


Does a zero dollar balance on a credit card help your credit score?

Usually, yes - at least temporarily. But if your credit card balance is always zero, it tends to pull the score down over time. Best use of credit is to have two cards, and use them discreetly - charge something and pay it in full at the next billing. Occasionally carry a balance for a few months, then pay it in full. I have followed this approach for 40 years - and my FICO score is 787 - considered to be very high.


Once you pay off a high balance on a credit card how soon will that affect your credit score?

Once you have paid the credit card balance off it will affect your score the following month. This is because the credit agencies only update your credit once a month. So the month following the payment would reflect the new balance of $0 and the score would be raised at that time.


Does paying off high balance credit card help your credit?

Yes. Amounts owed accounts for about 30% of your credit score. Ideally your utilization rate should be 20% or less. Paying your credit card balance to 20% or less will improve your credit score.


How can you increase credit score over 640?

1. Pay your bills on time. 2. Keep your balance to limit ration at 20% or less on your debt. 3. Have a good mix of credit (installment and revolving). 4. Do not close old accounts. 5. Do not apply for credit more than once every 6 months.


400 dollar limit on credit card go over credit score?

It should be reported effecting your score, also balance on it can either improve or reduce your score.


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 transfer all your credit card balance into your personal line of credit is it going to lower your credit score?

Probably slightly but just for a few months. Assuming you keep the credit card account open. I Factors that make score go up: overall you'll have more available credit so your debt to credit ratio will be lower because your credit card will now have 0 balance and therefore the entire limit of credit. Factors to make score go down: you are opening a new loan account and new accounts always hurt your score for the first few months. Additionally, you will be maxed out on the loan (technically the limit on a loan is the amount they lend you) until you start paying it down. A good mix of loan and credit cards is good for your score in the long run though.


If you have a lot of recent credit enquiries on your report how long does it take for your credit score to improve?

Credit inquires are factored into the score for 12 months for the purposes of lending and for 24 months for purposes of insurance quotes and underwriting.


Can a car loan help your credit score?

Yes it can if you keep the payments up, on time. Your bills for rent, electricity, phone and so on are also a big part of your credit score. Your credit score can be a little complicated but, for the most part, if you pay your bills on time your credit score will be a good one. Probably the most complicated part for average people is a credit card. If you have a credit card and your balance always runs pretty close to your credit limit, your credit score will be lower. On the other hand if you owe 10 to 15 percent of your limit it shows that you know how to manage your credit.


How does the ratio of credit limit to your balance affect your credit?

I know this much: Your balance-to-limit ratio is 30% of the criteria that credit bureaus use to generate your credit score. That's a large chunk.


If you close out some of your credit card accounts and continue to pay them off will that increase your credit score?

You should not close a credit card if you are still paying on it. It will bring your credit score down. Close it when you are done paying. I know this because my mom owns her own credit repair/management business and she tells me what to do with my credit cards.


How long do credit inquiries affect your credit score?

Credit inquiries are logged on your file for a period of 2 years. Some argue that the score itself is only effected for 12 months, but the inquiry is visible for 24 months.


How do you improve credit score?

You may improve your credit score by: 1. Paying your bills on time 2. Keeping your credit card utilization rate at 20% or less. (Example: If your credit card limit is $1,000, your balance shouldn't be more than $200) 3. Keep a good mix of installment and revolving loans 4. Don't close any old accounts. (even if they are not being used) 5. Limit your credit inquiries to 1 every 6 months.