How many points I will lose for closing a credit card with zero balance?
Updated on January 27, 2015
There is no set in stone number because a lot of different factors are considered when you close a card. Most important are credit utilization ratio and card’s age. If it is the oldest credit card in your credit portfolio, the average age of your credit will become shorter and your credit will go a bit down. Also, calculate how your credit utilization ratio will look after you close the card. If it will be above 30%, your credit score may drop significantly.
If you do not plan to use the card you want to close, and it does not have an annual fee or any other fees, think of keeping it open just to keep your credit score high.
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