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> Your credit score is negatively impacted if you close a credit card account What happens if you raise the credit limit on your remaining cards to eat the los
by jjawssd 10y ago
> Your credit score is negatively impacted if you close a credit card account
What happens if you raise the credit limit on your remaining cards to eat the loss of total credit?
- ams6110 10y agoI don't know the answer. I had assumed that it was the act of closing the account that was viewed as a negative and not the reduction in the aggregate credit limit. But I could be wrong.
- freehunter 10y agoMy wife is a manager of a bank branch and her brother is a credit analyst at another bank, and I've been told the reason it impacts your credit is because you now have less credit available to you, and you're likely now using more of your available credit. If you have $50 available on one card and $50 on another card, you have $100 of available credit. If you close one of the cards, you now only have $50 of available credit. If one card is maxed out and the other is empty (because you're about to close it), before you close it you are only using 50% of your available credit. Once you close it, you're now using 100% of your available credit, which looks bad.
- tedmiston 10y agoThe number of cards open is less important than the average age across your cards. https://www.creditkarma.com/article/credit-score-factors https://www.creditkarma.com/article/credit-score-factors