Editor's ChoiceCategories Credit Type Issuers Blog

What to Do If You Closed Out Too Many Credit Card Accounts


One of our readers, NoJobNow, sent us this question:

I was recently laid off and have paid off all my credit cards & collection accounts to clean my credit.
The only open accounts I have are 06′ Visa $1000 limit that is with my credit union, 07′ Target w/$200 limit (both w/no annual/monthly fees & low interest rates), and a 07′ $21K auto loan.

I closed an 06′ Merrick Bank acct that had $1150 limit w/$4 monthly fee, 06′ HSBC w/$300 limit and 02′ Capital One w/$600 limit-Low limits but high rates!

Now I’m seeing all these articles about closing accts will drop my score and am afraid because I was trying to get my credit right and not be in serious debt w/o a job!

I’m planning on a career change and will be applying for a student loan soon. Should I go back and re-open these accts or am I screwed in attaining a decent credit score and/or interest rate on my student loan? Please advice! Your help is greatly appreciated. Thank you in advance.

Thanks for your question!

The truth is, since you have already closed out your accounts the damage is done, and your score has dropped some. Re-opening the accounts is probably not a good strategy either. I say this because:


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