Does closing a credit card hurt your credit score?

_{closing credit card credit score, if closing a credit card hurts your credit score, New Brunswick}

Closing an old credit card might feel like parting with an old pal, but it can affect your credit score by shortening your credit history and reducing available credit. While this might ding your score temporarily, don’t fret. Keep up your good credit habits, and you’ll likely see improvement in 6-12 months. Reach out via phone, text, or live chat if you have any questions.

Show Table of Contents

_{Closing a credit card can impact your credit score.}

Closing Credit Card Credit Score Question

Does closing a credit card hurt your credit score? I want to close an old card with a $0 balance, but I heard closing cards can lower your score, so I need to know if that’s true before I do it.

From: Anonymous Question
Location: Fredericton, New Brunswick (NB)
Category: credit rebuilding

Closing Credit Card Credit Score Answer

Closing an old credit card can shake things up a bit with your credit score. It’s a bit like saying goodbye to a longtime friend—especially if it’s your oldest card. This move might shorten the average age of your accounts, which isn’t great news for your score. Plus, when you close a card with a $0 balance, your available credit shrinks, though your credit utilization won’t start waving red flags as long as you’re not juggling other balances. And hey, if your score does take a hit, don’t worry too much. Keep managing your credit like a pro, and you’ll likely see it bounce back in the six to twelve-month range. So, relax and keep an eye on your financial game plan.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Closing a credit card can potentially hurt your credit score because it affects your credit utilization ratio and the length of your credit history. Even with a $0 balance, closing an old credit card may reduce your available credit, which can impact your overall credit utilization percentage. Additionally, a longer credit history is often viewed positively by credit scoring models, so closing an old account could shorten that history. While the sources provided do not specifically address this matter, industry knowledge confirms that maintaining older accounts can be beneficial for your credit score. Thus, consider these factors carefully before deciding to close the card.

From: OSB Helper

Related Questions to If Closing A Credit Card Hurts Your Credit Score

Here are the top 5 most frequently asked questions related to the impact of closing a credit card on your credit score, based on current trends and concerns:

1. Does closing a credit card hurt my credit score?

• Yes, it can temporarily lower your score.

2. How long does it take for my credit score to recover after closing a credit card?

• Typically, it recovers within a few months if you continue to use credit responsibly.

3. What are the main factors that closing a credit card affects in my credit score?

• It affects your credit history, credit utilization ratio, and credit mix.

4. Should I close my oldest or newest credit card to minimize the impact on my credit score?

• It is best to keep your oldest card open and cancel a newer one.

5. How does closing a credit card impact my credit utilization ratio?

• It decreases your overall credit limit, potentially increasing your credit utilization ratio.

If you have a question about debt see our debt questions or ask your own debt related question.

References

_{Table of article references}