How does closing a credit card hurt your credit?

I want to close my husband's credit card (with his permission) because there are random recurring payments being taken on it and we just want the payments to stop (there will be no penalty from the people withdrawing, just memberships cancelled). That's the main reason I want to cancel, but also so we aren't tempted to charge anything...how does it hurt your credit? For how long?|||I will provide you with five scenarios to illustrate the possible impacts on your credit score.





Low balance, low available credit, new account


Let us start with an easy scenario first. Let us say the account has a zero balance, a relatively low available credit balance, and is among your newer accounts. In this situation, there will be virtually no negative impact on your credit score for reasons we discuss below.





Low balance, low available credit, old account


Now let us change the facts slightly. Let us say that this account is your oldest, has a zero balance, and a small available credit balance. The length of a positive credit history counts for about 15% of your credit score. The longer you maintain accounts in good standing, the better your score will be. This shows that you are able to make a long-term commitment to a creditor and are consistently responsible about making your payments. Generally speaking, if you have accounts with long history (five or more years) and no missed payments, you should keep these open and with a zero balance.





Low balance, high available credit, new account


Now let us change the facts slightly again. Let us say that this account has a zero balance, is not your oldest, and has a relatively large available credit balance. Let us add one fact here -- your other accounts have a relatively low available credit balances. Total debt and total available credit counts for about 30% of your credit score. A credit score considers how much debt you have compared to the total available credit on your accounts. If all of your accounts are maxed out, you will be considered a poor credit risk, because it appears that you are struggling to pay off the debt you have already incurred. If your account balances are relatively low compared to your available credit, this part of the risk analysis should help your overall credit score.





The score calculation also looks at these two factors independently. Having too much available credit, whether you have used it or not, could hurt your credit score, as statistical studies have shown that people with excessive amounts of available credit are a higher credit risk. Unfortunately, the bureaus do not define exactly what they consider excessive, so the best tip is to use credit conservatively and to keep your debt-to-credit limit ratio low.





If closing a high available credit balance account alters your debt-to-credit limit ratio significantly then you can see a decrease in your credit score.





High-balance account


The bank will expect you to pay the balance immediately if you choose to opt-out and the bank closes the account. If your cannot pay-off the balance then the delinquency will harm your payment history. Payment history counts for approximately 35% of your score, and is the most heavily weighted factor used in calculating your credit score. Consistently paying your bills on time has a positive influence on your score, while late or missed payments will hurt you in this area. If you have delinquent payments, the older the delinquency the less the negative impact on your score will be. Conversely, recent delinquent payments are very harmful to your credit score.





Unique account


The mix of types of credit counts for approximately 10% of a credit score. Having several different types of credit, such a credit cards, consumer loans, and secured debt, will have a positive influence on your credit score. Having too much of one type of credit can have a negative impact. If you have one or two other credit accounts, then closing this account will harm your credit score. Conversely, if you have a diverse array of credit accounts closing this account will not have a large impact, all other things being equal.





As you can see, the answer to the question "How much will closing one credit card account harm my credit score?" varies with each person and their unique circumstances and history. To learn more about how credit scores work I encourage you to visit FICO Score Calculation.





I hope this information helps you Find. Learn %26amp; Save.





Best,


Bill


www.bills.com/blog/|||Closing the card will NOT stop those charges.


You will close the account - but STILL get a bill for those charges.





You must contact whomever is charging you and get them to stop the services.





Closing an account will hurt you in 2 ways.


1. It could be your oldest credit card.


"length of credit history is 15% of your score





2. It will reduce the overall unused avialble limits on all your cards combined.


Creditors like to see unused cash - shows credit worthiness.


---------


They don't need to send you a bill.


They will continue charging your credit card - even after you close your account.


The credit card company will continue sending you a statement even if you closed your account.


You will be responsible for the charges - open account or closed - does not matter.


/|||It won't hurt unless it's your only card or your other cards are maxed out. A statistic they use is total balances divided by total lines of credit. Closing the account will remove the amount of this line of credit from the total. You can compensate for this by asking for an increase on one of your other cards.





It may help if you have a lot of cards.|||It does not always hurt. It sometimes helps.





When it does hurt, the reason that it hurts is because keeping it open had been helping your credit; if you close it, then it stops helping. Since it never resumes helping your credit, the effect is permanent.|||If you cannot stop the charges through the sports site...call the ccc %26amp; tell them these are unauthorized charges. This is why cards have fraud protection. Just tell them they have to cease payment to that company %26amp; want the old charges removed if possible.|||How much canceling a credit card will hurt your credit depends on various factors such as how long you've had the card and the credit limit. Here's more information about this important topic: http://moneygirl.quickanddirtytips.com/c鈥?/a>