Closing Credit Card Accounts Not Always Best for Credit Score

Closing Credit Card Accounts Not Always Best for Credit Score
News
Thursday, July 5, 2012 - 8:49am

You've probably heard that closing a credit card can actually damage your credit score but do you know why?

It's your credit utilization ratio which is the amount of credit you've used, compared to the amount you have available. That factor is about 30% of your score.
 

If you're considering closing an account credit card experts says don't do it if it's your only card and if you have others check the balances because you want to get the balances as low as possible.
It's best to have a zero balance when closing the card.

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