Closing A Credit Card Account That Is Inactive? How Much Will It Affect My Credit Report?
Posted by admin on November 22nd, 2009 at 04:55am
I’ve had this account for about two years, and I haven’t used it in a long time, and I’m thinking of closing it but I don’t know how it would affect my credit report. This is a secure credit card, with only a $300 limit. I have two other credit cards that I use a lot more often and I’ve been very responsible about paying bills on time.
Tags: Account, Affect, Card, Closing, Credit, Inactive, Much, Report
Under Credit
5 Comments for Closing A Credit Card Account That Is Inactive? How Much Will It Affect My Credit Report?
1. JD_in_FL | November 22nd, 2009 at 5:05 am
Why close an account that you have built up over two years is the better question?
If it is secured and you have good payment history, why not call the issuing credit card company and ask them to give you a unsecured credit card?
But to answer your question, it probably will have an effect but the effect is unknown without knowing more about your situation. No one can answer this question without knowing you entire credit file history. You can however, go to simulators like myfico.com or MSN has a simulator that will show what will happen if you close the account.
I think it is better to keep it inactive and unsecured then closed. You never know when it could help and building credit is what you have done with your bill payment history.
Good Luck
2. jenahfah | November 22nd, 2009 at 5:39 am
If nothing else, use it for a small purchase at least once a year and pay it off. If you do not use an account for 12 months, they might close it on you anyway.
What hurts your credit the most is abuse, failure to pay, or using more than 30% of your limits. If you have three cards and pay them off each month, then spread the debt out so that no one card exceeds 30% of its limit.
Having a card even with only a $300 limit, is $300 worth of credit. As soon as you close it, your available credit drops by $300, which could hurt you.
If any of your cards are charging annual fees, consider getting another card with a higher limit and no fees. After you get the boost of the extra credit limit, then close the card with the fees.
3. teenriod | November 22nd, 2009 at 5:56 am
No harm.
4. SPIFIMAN | November 22nd, 2009 at 6:22 am
Having an unused credit limit on an unused card is far better for your credit score than not having the card at all.
As long as you don’t need the card cut it up and get rid of the card but keep the account open.
5. terry_po | November 22nd, 2009 at 6:34 am
No harm to your credit
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