How to downsize the cards without messing up score

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Robyn Arrington

• July 24, 2020 20:41

Interested in dropping a secured card account we used for husband because it was all he could get at the time. Plus my mission lane card. Cause its was used to get my credit rolling. Want to focus on credit one cards we both share and apply with my credit union for a long term goal. How do we do this without damaging our progress?

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  Monique - Thrive Moderator🌱

  • July 27, 2020 22:07

  Hi Robyn Arrington, Before you close any credit card accounts, there are a few things you should know. Closing a credit card account can actually lower your credit score as the length of your credit history makes up about 15% of the three major credit scores. Our general advice is to keep accounts open and in good standing as long as possible.Let us know if this information was helpful to you and if you would like to learn more about it. 

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  Gil Garcia

  • July 30, 2020 07:54

  Hi Robyn Arrington,

  When you close a credit card account, you lose the available credit limit on that account. ... Another reason closing a credit card can cause your score to drop is that it can lower the average age of accounts on your credit report, especially if it's an account that's been open for a long time.

  Experts recommend that you keep your utilization rate under 30%.

  Canceling a Credit Card Makes Sense when the card has a high annual fee and the benefits aren't worth it to you. The interest rate on the card is high and you need to carry a balance

  On the flip side, there are certain circumstances when it can be wiser to keep the account open

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  Evgeniy Kuznetsov

  • August 13, 2020 07:44

  Closing older accounts is definitely not recommended, unless you already have a positively established history with another institutions for period of years. In most cases it does not affect your credit to much if you already have score above 700 and have several diversified accounts already on your report. 3-5 accounts is generally what lenders like to see on your report to determine your credit worthiness. To Summarize keep all your accounts that are in good standings but don't be afraid to cancel or close the account if you can't get a better card with better % and fees. CARDS that do not charge fees are always good account to keep.

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