Will closing a credit account help a FICO score?
I got a new credit card last fall and noticed that my FICO score dropped some. The card has no balance on it and if I close it, will my FICO score go back up?
Public Comments
- Yes, the fewer open acount you have the better it will get. Just have one of each credit open, VISA MASTER,DICOVER ans AMX
- Too much available credit is a liability. If you have cards with no balance and you don't need them, get rid of them. Also, each time there is an inquiry, your score drops some. So, don't apply for credit unless you MUST. You can also put a block on your file requiring they contact you before allowing an inquiry.
- It depends on the balance on your other cards, and you limit on the card you want to close. One thing the FICO score model takes into account is the amount of credit available to the amount of credit being used. And if you close that account it will affect you overall usage, and could decrease your score even more. Once the account has been opened the damage is done, just put it away and don't use it.
- Closing a credit CARD account ALWAYS hurts your FICO score ! ! ! Just use the credit card accounts you're not happy with JUST ENOUGH to keep it active. LOL
- The credit reporting agencies do not arbitrarily decide on your credit score. In fact every loan, mortgage or credit card you take is closely monitored by the financial institution that provides it. The way you tackle your debt, repayment and interest rates is tracked by the company and sent to the credit rating agencies to calculate your credit score. The software used to calculate your credit score is FICO (Fair Issacs Corporation) after the people who designed it. It is a fairly complicated piece of software that decides on your credit score based on established parameters. Read more about it at: http://www.credit-card-gallery.com/article/213,Your_Credit_report_5_myths_busted
