{"id":352453,"date":"2014-10-31T06:00:04","date_gmt":"2014-10-31T12:00:04","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=352453"},"modified":"2022-03-31T18:51:42","modified_gmt":"2022-04-01T00:51:42","slug":"credit-qa-should-i-close-my-credit-card","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/","title":{"rendered":"Credit Q&#038;A: Should I Close My Credit Card?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-352456\" src=\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945.jpg\" alt=\"shutterstock_79372945\" width=\"461\" height=\"310\" srcset=\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945.jpg 1000w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-300x202.jpg 300w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-768x516.jpg 768w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-595x400.jpg 595w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-450x302.jpg 450w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-600x403.jpg 600w, https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945-900x605.jpg 900w\" sizes=\"(max-width: 461px) 100vw, 461px\" \/><\/p>\n<p>If you\u2019re new to the world of credit repair, you\u2019re probably wondering just how, <em>exactly<\/em>, do credit cards help or hurt your progress. The decision to close a credit card is a tough one. While it may carry long-term benefits, it can also carry risks. Read on to discover when and how to close a credit account. What you learn will safeguard your score.<\/p>\n<p><strong>Why should I close a credit card?<\/strong><\/p>\n<p>Consider closing a credit card in the event of:<!--more--><\/p>\n<blockquote>\n<ul>\n<li><strong>Separation or divorce. <\/strong>Joint accounts have the power to hurt your credit during a separation or divorce. Sever financial ties by closing these cards as soon as possible.<\/li>\n<li><strong>Identity theft. <\/strong>If your card has been lost or stolen, your credit provider will help you close the account and issue a new card. While this is usually done automatically, be sure to contact your provider to verify the change.<\/li>\n<li><strong>Moving out of network. <\/strong>Here\u2019s a scenario: You live in a small town that has a Mom and Pop department store. You recently accepted a job 2,000 miles away and no longer need your department store card. Unless you plan to visit and use the card occasionally, now is the time to close it.<\/li>\n<li><strong>Legal issues. <\/strong>Here\u2019s another scenario: You recently bought $3,000 worth of tile from a home improvement store for a remodel project. The balance was placed on your store credit card. Unfortunately, many of the tiles were broken upon delivery and the store is refusing to refund your money. You are forced to pursue civil charges in order to recoup expenses. In the meantime, you decide to close your card, convinced you will never do business with the company again.<\/li>\n<\/ul>\n<\/blockquote>\n<p><strong>Why shouldn\u2019t I close a credit card?<\/strong><\/p>\n<p>There are a few good reasons to close a credit card, but the ones below don\u2019t merit a change. Avoid closing a credit card due to:<\/p>\n<blockquote>\n<ul>\n<li><strong>Lack of use. <\/strong>Credit length is a powerful player in the <a title=\"Five Factors: How Your Credit Score is Calculated\" href=\"https:\/\/www.creditrepair.com\/blog\/credit-score\/five-factors-how-your-credit-score-is-calculated\/\" target=\"_blank\" rel=\"noopener\">scoring game<\/a>, representing 15 percent of your credit score. Keep your account current by using it, not losing it!<\/li>\n<li><strong>Unpaid balances. <\/strong>Closing a credit card won\u2019t erase unpaid balances, so unless you plan to stop using the card entirely, you may as well keep it open.<\/li>\n<li><strong>Debt precautions. <\/strong>All right, you\u2019re bad with money. Maybe you have problems with impulse control or haven\u2019t learned the basics of personal finance. Either way, closing your card won\u2019t solve the real problem. If you\u2019re worried about overspending, ask your lender to freeze the account until you\u2019ve gained the confidence to begin using it again.<\/li>\n<\/ul>\n<\/blockquote>\n<p><strong>Will closing a card hurt my score?<\/strong><\/p>\n<p>It can, yes. Closing a credit card can damage your credit by:<\/p>\n<blockquote>\n<ul>\n<li><strong>Affecting your credit utilization ratio<\/strong>, or the amount of debt you owe vs. your total credit limit. Consider the following example:<\/li>\n<\/ul>\n<\/blockquote>\n<p><em>Gill has two credit cards:<\/em><\/p>\n<blockquote>\n<ul>\n<li><em>A Visa with a $5,000 limit and a $1,700 balance. <\/em><\/li>\n<li><em>A MasterCard with a $7,000 limit and a $1,450 balance.<\/em><\/li>\n<\/ul>\n<\/blockquote>\n<p><em>Total debt: $3,150<\/em><\/p>\n<p><em>Total credit limit: $12,000<\/em><\/p>\n<p><em>Total Utilization ratio: 26.2 percent<\/em><\/p>\n<p><em>Let\u2019s assume Gill decides to close his MasterCard. As we learned, his debt is not erased, but his total credit limit is reduced to $5,000, raising his utilization ratio to 63 percent. <\/em><\/p>\n<p>Avoid Gill\u2019s mistake by considering the impact of your decision. Pay off a card balance before closing it and ask other lenders to raise your credit limit in order to eclipse the loss.<\/p>\n<blockquote>\n<ul>\n<li><strong>Limiting your credit length<\/strong>. Old credit is the best credit. Lenders rely on your financial past to predict future habits and risk. Closing an old credit card won\u2019t erase your history, but it will end the usage of an old account, a factor that could hurt your credit score.<\/li>\n<\/ul>\n<\/blockquote>\n<p>The bottom line: Closing a credit card is a big decision. Before taking the leap, talk to a <a href=\"https:\/\/www.creditrepair.com\">professional<\/a> about how the change may affect your credit score.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re new to the world of credit repair, you\u2019re probably wondering just how, exactly, do credit cards help or hurt your progress. The decision to close a credit card is a tough one. While it may carry long-term benefits, it can also carry risks. Read on to discover when and how to close a [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.5 (Yoast SEO v18.5.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit Q&amp;A: Should I Close My Credit Card? - CreditRepair.com<\/title>\n<meta name=\"description\" content=\"Read on to discover when and how to close a credit account. What you learn will safeguard your score.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Credit Q&amp;A: Should I Close My Credit Card?\" \/>\n<meta property=\"og:description\" content=\"Read on to discover when and how to close a credit account. What you learn will safeguard your score.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/\" \/>\n<meta property=\"og:site_name\" content=\"CreditRepair.com\" \/>\n<meta property=\"article:published_time\" content=\"2014-10-31T12:00:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-01T00:51:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sarah Szczypinski\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#website\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/\",\"name\":\"CreditRepair.com\",\"description\":\"We are the credit repair experts\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.creditrepair.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945.jpg\",\"contentUrl\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/10\/shutterstock_79372945.jpg\",\"width\":1000,\"height\":672},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/#webpage\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/\",\"name\":\"Credit Q&A: Should I Close My Credit Card? - CreditRepair.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/uncategorized\/credit-qa-should-i-close-my-credit-card\/#primaryimage\"},\"datePublished\":\"2014-10-31T12:00:04+00:00\",\"dateModified\":\"2022-04-01T00:51:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#\/schema\/person\/d3e71b72daf197806b1741f59a515dc7\"},\"description\":\"Read on to discover when and how to close a credit account. 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