Does closing a credit card affect your credit rating?

I have had 2 cards for a long time, Best Buy and a VISA. I did however open another 2 around christmas in order to get some free stuff, I have however paid off those balances. If I close these 2 cards, will my rating be affected?

Does closing a credit card affect your credit rating?
Yes your credit rating will be affected. It is also affected everytime you open a new credit card. My advice would be to give up credit cards and pay cash for everything.





"Live your wage" is my new motto. Why spend more than you make? If you want something, save up the money for it and buy it with cash, after waiting a month or so to get it, you may find you dont really want it any more and you can keep saving for something else.
Reply:Yes yes yes!Personally i put about 50.00 on my accounts each month and pay them off. I don't carry them with me. They are put up so i want be tempted. I have a emergency fund built up. Which accounts have the best terms?yes your credit score can be affected. You get points from the lenght of credit account and how well you paid it. And how debt ratio is? I would charge a very minor amount on each card. Less than 20 to thirty percent to build better credit.


Pay them off in 25 days or less. Treat those credit cards with respect, Or they can bite you like a snake! Cut the cards up, or put them a way and don't use them. Does your new cards+ better rates? Close one account and then a year later close the other. I love Dave Ramsey.





i am very close to financial freedom. Be smart you rule your finances.
Reply:For me, closing two of my credit accounts made the difference in me getting a loan I had applied for. Until I pointed out to them that I had paid off and closed the accounts, they rejected my loan application. What it did for me was lower my debt to income ratio. It will also show on your credit report that you have 2 less open revolving accounts. If your credit is not the best, this will help. For people who have fairly good credit, keeping the accounts at zero may actually cause the credit report to be higher than closing out the account.
Reply:Yes, it will likely lower your score for two main reasons:





First, you will reduce your total available credit. So basically if you had 5 credit cards with credit lines totaling $10,000. And now you've closed two of those cards, your new total credit line might be $7,500. So whatever your balance is now will make your total available credit percentage lower than previously.





Secondly, you will lose the credit history on those cards, and the time those accounts have been opened. Creditors also like to see credit lines with history. Most creditors want to see credit cards with a 2 year history or greater.





And new lines of credit mean very little, and will actually lower your score in the short term as you apply for more credit and become riskier.





Learn more at http://www.thetruthaboutcreditcards.com and





http://www.thetruthaboutmortgage.com
Reply:yes.
Reply:Not if the balance is paid off.
Reply:Yes it can and here's why.http://www.crusaderservices.com/article_...
Reply:Credit rating is based on your spending and payment records. If you settle your cards in full and close them, this should not affect your rating.
Reply:Be sure to not just close the card, but have it removed from credit reporting companies. your credit will improve as you have less to borrow against.
Reply:I have been in credit counseling... I was told it is better to have a credit card for ten years with revoling credit than a closed account with a opened new account... the only time a new account is really accepted is if the interest rate was high... you closed the account for a lower rate
Reply:The act of closing a card doesn't affect it, but the loss of available credit (i.e. the additional amount of money you can access through credit - your credit limits) will cause your credit rating to drop, but not below what it was before opening the cards.
Reply:Afraid so, It seems unfair, but when you close a credit card account you lose available credit, therefore, there is a decline in your credit rating. Its just wrong.
Reply:Yes, your credit rating will be slightly downgraded due to closing a credit card. The amount of your available credit will decline as a result of that action.