https://www.financeglobe.com/post/3-personal-reasons-to-close-a-credit-card-account/ Personal Finance Tips & Tools Sun, 23 Apr 2017 00:32:21 +0000 hourly 1 https://wordpress.org/?v=6.9 https://www.financeglobe.com/post/3-personal-reasons-to-close-a-credit-card-account/#comment-397 Sun, 23 Apr 2017 00:32:21 +0000 https://www.financeglobe.com/tools/2017/04/21/3-personal-reasons-to-close-a-credit-card-account/#comment-397 In early 2016 I determined there were more credit card accounts for me to use than was required or practical. So, I determined what accounts best served my needs and to close the balance. In the end I closed six accounts (four bank card and two store accounts). The total credit limits reduced were $50,000. Now my FICO Scores took a temporary reduction which lasted a few months and then came back up. As has been brought out, there are some factors to be aware of: 1) You are reducing the “available credit” to be used in calculating your credit report utilization; and 2) you will see your accounts report “Closed by Consumer” as a positive report which means they usually will remain on your credit report for ten years. The danger, around ten years they may drop off and you may lose the positive effect of the closed accounts. Remember, credit reports put weight on “Oldest Account” and “Average Age of Accounts.” You wonder is it worth the risk … that is what you need to weigh. For me, my hope is that the depth of my credit file will be such that the impact will be minimal.

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