Yes, closing credit accounts can hurt your credit score in the short term, depending on how old the accounts are and how much other credit you have. But canceling a credit card account might also benefit your credit score in the long run if you manage the rest of your finances better as a result of having one fewer account to worry about.
Here’s what happens to your credit score when you cancel a credit card:
Credit score drops: Your credit score often goes down because the average age of your open accounts decreases and your overall utilization increases (since you have less available credit).
Scores bounce back: Your credit score should rebound within 3-6 months of canceling your credit card account. Make sure to have at least one open credit card remaining and pay all your bills on time.
What happens if you don’t cancel: A credit card that is in good standing will continue to help your credit score. Even if you don’t make purchases with it, it will still report positive information to the credit bureaus each month. This is definitely worth considering if your card does not charge an annual fee.
Age matters: Closing newer accounts won’t have as much of an impact as closing older ones.
Limit matters: Closing low-limit accounts won’t do as much damage as closing high-limit ones.
When score drops matter: If you don’t need the best score possible for the 3-6 months it usually takes credit scores to bounce back after credit card cancelation, the temporary drop shouldn’t cost you anything.
Bottom Line: Avoid canceling your oldest card and your card with the highest credit limit. That will mitigate the amount of credit score damage. And if you have to close your oldest or highest-limit card, make sure you do it at a time when you don’t need your credit score to be at its best.
It might have a short term negative impact on your credit. However, now that you've established some payment history you should be able to apply and obtain regular credit card with no annual fees and perhaps with some rewards (cash back or some bonus points).
Yes this will affect your credit score. However, I've found it doesn't affect your score that much if you already have good credit. You may leave the card open but I would definitely check your credit report each year since so many people have had their information stolen over the last few years. The credit report will show you what credit cards, loans or mortgages you've ever taken out. Check to make sure there's nothing open without your knowledge. https://www.annualcreditreport.com/index.action
The easiest way to cancel a Credit One card is by calling customer service at (877) 825-3242. Another way to cancel your card is to mail the request. Credit One does not offer an option to cancel online. More specifically, you can cancel your Credit One credit card:
Over the phone:… read full answer To cancel your card over the phone, call (877) 825-3242. When prompted, enter your card number. Once connected to a customer service representative, state that you want to cancel the card and close your account. The representative may counter with a “retention offer,” such as lower fees or interest rates, to keep you as a customer.
Via mail: Another way to cancel your Credit One credit card is to mail the request. The address is:
Credit One Bank General Correspondence P.O. Box 98873 Las Vegas, NV 89193-8873
Keep in mind that requests by mail will take longer to process.
What to do after you cancel a Credit One card:
When you cancel your Credit One card, you’ll still have to pay at least the minimum amount due on any balance each month until it’s paid in full. Your account won’t be officially closed until you do. Any future transactions that you try to make after cancelling will be declined, but pending transactions may still process. You’ll need to update the payment method for any recurring bills you were charging to the Credit One card, too.
Also, make sure to cash in any leftover rewards before canceling your Credit One card, as unredeemed rewards will expire once you close the account.
When to cancel a Credit One credit card:
A primary reason you’d want to cancel a Credit One card is that you simply no longer need it. Credit One cards are designed for people with bad-to-fair credit. They also come with high annual fees. As such, your credit standing may be to the point where you’re ready to upgrade to a card with lower fees and more rewards. And because Credit One caters only to a specific group of customers, upgrading to another Credit One card is not really an option.
Keep in mind that when you cancel a Credit One card, your credit score could temporarily take a small hit, depending on the specifics of your credit history.
Closing a secured credit card has the potential to hurt your score. But that’s not because it’s a secured card. You run the risk of a slight drop in your score when closing any credit card because it can make your credit history seem shorter and reduce the total amount of credit you have available. And the impact usually is most significant when you close your oldest account.… read full answer
All else being equal, it’s best to keep unused accounts open. But it’s a slightly different story if you’re paying an annual fee or leaving a deposit in the custody of your card’s issuer. That’s especially true if you don’t need your credit score to be in top shape in the very near future. You don’t want to waste money on something you never use, after all, or give your card’s issuer an indefinite loan. And since secured cards typically don’t pay interest on deposits, there are far better uses for your fee and deposit money in the long run. For example, if you placed a $200 deposit on a secured credit card in 2008 and never closed your account, that $200 would still be $200. But if you invested that money in an S&P 500 index fund, you’d have more than $600 today.
Of course, you’d need to use a secured card for a while to improve your credit score enough to qualify for an unsecured card. And if you consistently pay your secured card’s bill on time, the issuer may offer to refund your security deposit. So it’s important to weigh all the different variables before deciding whether or not to close a secured credit card. And that includes how soon you plan to apply for a mortgage, auto loan or other major financial commitment for which your credit will be checked. A bit of temporary credit score damage won’t cost you if you don’t try to borrow until your score rebounds.
Here’s what you need to know about closing a secured credit card:
If you close the card, your average account age decreases and your total credit utilization increases. This may lead to a temporary credit score drop.
If you don’t close the card, it will continue to report positive information to the credit bureaus each month, even if you don’t use it and there’s no balance.
If your card charges an expensive annual fee, you may want to close it rather than pay every year for a card you’re not using.
When you close a secured credit card, you’ll get your deposit back minus any outstanding balance.
Some issuers will let you graduate to an unsecured card after consistent on-time payments. That means you’ll get your deposit back and often receive better benefits on your card.
In all, closing a secured credit card might not be the greatest idea. But most secured card users do it at some point. And you can lessen the impact with good timing.
Closing old credit accounts, even if they have 0 balance will likely negatively effect your credit score in two ways:
First, if closing the accounts shortens the length of your average credit history, your score will be negatively impacted. If you are worried about your credit score, keep older accounts open to keep credit history.
Second, if closing these accounts will significantly reduce your outstanding credit and cause you to use a larger percentage of your outstanding credit, your score will be negatively impacted.
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