February 26, 2012 at 3:50 am #2666Christie0909Participant
Does closing all cards with a 0 balance affect your score that way?February 26, 2012 at 11:14 pm #2667fontanamanParticipant
Hi Melanie. and congrats on your new Chase Freedom card.
According to what I’ve read, you need to follow a few simple steps to make sure you close your credit card account with the least damage possible to your credit score.
– First of all pay your balance in full.
– Try to have a 0 balance in your other cards as well: “To close card accounts without impacting one’s credit score, you need only have zero balances on your credit report for all of your active credit cards. That’s because if you have zero balances your credit utilization rate is therefore zero, and you can’t raise it — and potentially hurt your score — by closing one or more of the active card accounts.”
– Call the bank to cancel the card.
– Write a letter to the bank requesting a confirmation letter of the closure. “Also, state that you want your credit report to reflect that the account was “closed at the consumer’s request.”
– Check your credit report to confirm everything went as planned.
Also, closing a credit card might affect everybody in a different way. “The time an account has been open is a factor in credit scores. A longer positive history is beneficial to credit scores. So, closing an older account in theory could have a more negative impact.”April 2, 2014 at 2:41 pm #3645jcll2013Participant
Welcome to our Capital One chat service! One of our Account Specialists will be right with you. This chat will be monitored and recorded. Your estimated wait time is 1 seconds.
Hi, this is Barbara. Whom do I have the pleasure of chatting with today?
Barbara: Hi, Jc!
Barbara: How may I assist you today?
you: I have a secured card, with a limit of 3000. I see “Make a Deposit” under my available credit…
you: My question is: How much of a deposit can I make?
Barbara: I understand your concern.
Barbara: You can make a deposit up to $3000.00.
Barbara: Since you have already reached the limit, you will not be able to make deposit more than that.
you: Second question: Will this account ever graduate to an unsecured line of credit?
Barbara: I understand your question.
Barbara: Currently there is no graduation plan in place to change a Secured Card to an Unsecured Card. You do have the option to apply for an Unsecured Card separately, though.
you: Will I ever see a return of my $3000.00 without closing the account?
Barbara: If you ever close your Secured Card account and pay the balance in full, your security deposit is fully refundable.
you: When I applied/opened the card– I believe I was told that it WAS eligible to graduate. Why/when did this change?
Barbara: I understand your point.
Barbara: However, I am afraid we do not have the option to change a Secured Card to an Unsecured Card.
Barbara: You do have the option to apply for an Unsecured Card separately, though.April 10, 2014 at 1:21 pm #3647Cmon09Participant
Hi everyone, It has been a while since I posted. I saw some people were asking if closing the card would hurt their credit. I am not sure but everyone I have talked to mortgage brokers, and etc tell me it will. I could never figure out what I wanted to do, but I decided to close mine because I have enough cards and I never use this card anymore and I didn’t see the point. Now this card was not my oldest card so it may effect others differently. All I know is I paid this card off and closed it and my credit score went up! Isn’t that strange? It could be a coincidence but when I checked my score last week a couple of days after closing the account to see what kind of impact it would have my score went up 29 points. In the end I think it just depends on you personally and your personal credit history.May 30, 2014 at 6:49 pm #3654fontanamanParticipant
I agree, closing a credit card might affect everybody in a different way. In general I try to keep only the cards that I need, no more than that. Thanks for keeping us updated Cmon, that’s great news.
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