Comments on: Reader Question: How Will Closing Multiple Credit Accounts Affect My Credit Score?

By: andar909

andar909 — Sun, 10 Aug 2008 19:55:50 +0000

hi, andar here, i just read your post. i like very much. agree to you, sir.

By: Everything Finance

Everything Finance — Mon, 04 Aug 2008 13:28:06 +0000

Carnival of Everything Finance: # 20…

Welcome to the August 4, 2008 edition of Carnival of Everything Finance.We had over 100 really good articles submitted for this edition. Unfortunately I ……

By: Finance Fiesta - Now With More Piñatas! | Counting My Pennies

Finance Fiesta - Now With More Piñatas! | Counting My Pennies — Thu, 31 Jul 2008 10:43:27 +0000

[...] Credit Card presents How Will Closing Multiple Credit Accounts Affect My Credit Score? Want to get rid of some of those credit cards but not sure if it’s worth it? Check out this [...]

By: Jenna

Jenna — Fri, 25 Jul 2008 02:26:19 +0000

@ A.Brown -Thanks for your question! We’ll answer it Wednesday 7/30/08 so check back.

By: Jenna

Jenna — Fri, 25 Jul 2008 02:24:45 +0000

@ Michael,

Thanks for your comment. You are right that closing accounts will pretty much always lower your score. How much it lowers it depends on a lot of factors. I was pretty much assuming that Ben wanted to close some of those accounts out regardless.

I really appreciate you taking the time to write such an awesome response.

I also second calling the company when your cards have high fees. It always pays to ask.

The same goes for late and over the limit fees. All companies can removed them for you, you just have to ask, and occasionally get a manager.

~Jenna

By: A.Brown

A.Brown — Thu, 24 Jul 2008 16:54:12 +0000

Hello – I recently requested and received my credit report and score from Equifax. I was happy that it came back at 792. However, it stated that I have too many open accounts and too many recently opened accounts. Over the years I have had my fair share of creedit cards, car loans, lines of credit. But I have always had a plan, and currently I have a $0 balance on most all of these open lines of credit. I do have one credit card with 6k on it, plus I have two mortgages. Will simply waiting until the accounts are no longer considered “new/recently opened” help me? I know my score is good, but I want it up over 800. Thanks.

By: Michael

Michael — Thu, 24 Jul 2008 01:50:03 +0000

Ben:

I have to disagree with the advice of closing your credit card account. It is for the most part to your advantage to keep the account open even if it has a zero balance.

When you close an account, it will effect your FICO score and bring it down. If you have a large annual fee you are paying even if you don’t use it, try calling the bank or company the card is with and ask them to either lower the fee or not charge you all together.

You need to make sure you talk to a person that is able to make that decision though. Most people on the other end of the line are just customer service reps and don’t make those decisions.

You need to talk with a supervisor or manager. If you don’t get satisfaction from them, if you really don’t need to keep the card. Then close the account.
But like the advice given, I would let a period of time roll by before making any decisions that would cause a credit inquiry to be made.

Michael

By: Jenna

Jenna — Wed, 23 Jul 2008 20:37:17 +0000

Thanks for your question Tim! We’ll answer it this Friday 7/23/08.

~Jenna

By: timtribble

timtribble — Wed, 23 Jul 2008 19:03:44 +0000

Reader Question: Which is better for my credit score; paying off my balance before the end of the month (meaning I get a bill with a zero balance), or paying off my balance each month after I receive the bill (and all the months charges are posted).

NOTE: I’m on a special student card that gives me 0% ARP for balances under $250 with a $750 limit, so staying under $250 keeps me under 30%. What I’m saying is I pay the same amount wether I pay before the bill or after, so I just want to know which is best for my building my score.

Thanks
–timtribble