Can closed credit card accounts help credit score?

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This topic contains 2 replies, has 3 voices, and was last updated by  Anonymous 8 years, 5 months ago.

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  • #215843


    I remember hearing about a month ago that there were changes to the credit score rating system. One of the changes supposedly would calculate closed credit card accounts into overall available credit. So if I keep a small balance on these closed accounts will it help my credit score?

  • #285695

    If the account is closed then you need to pay it off ASAP. If the account was in good standing then it will remain on your report for 10+ years. The good payment history will help that portion of your score but not your ratio of available credit.

  • #288297


    Closing an account will still hurt you in 2 ways.

    1. You could be deleting part of your “length of credit history” = 15% of your fico.
    2. Overall usused limits – future creditors like to see a lot of this.
    By closing your accounts, the account will eventually drop off your credit report.
    If you leave it open – it will never drop off.

    Not sure why some people believe it is so important to close old credit card accounts.
    It really does not do any good.

    Charge a little something each month on a card like food or gas.
    And pay in full each month.
    This is an easy way to maintain good credit and never pay interest.
    Some people believe that paying interest is good for you.
    Nothing, absolutely nothing could be further from the truth.

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