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To successfully close an account, you must first have a zero balance on said account. Otherwise, you will still receive bills on that balance, which can and probably will accrue late charges.

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Q: If you close your account with a balance will this hurt your credit or your credit score?
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Does transferring balances effect your credit score or is it reported?

== == Yes, when you transfer a balance you are required to close that account. Closing an account decreases your score up to 20 points. You then increase the balance of a new account. Opening a new account decreases your score up 20 points. If you have a balance on an account that is already open and your transfer more money into that account you are increasing your balance; which will decrease your score up to 20 points. So, be careful with this process, and be aware of the affects.


What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?

I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).


Will your credit score drop if you close a zero balance credit card that has been open for only four months?

There are many factors in credit scoring. Closing an account should not make it drop in score. Especially if it is a small amount of credit available.


What does transferring credit card balance to new card do to credit?

Generally, after two (2) months, the balance transfer from one card to another only minorly impacts one's credit. The key is the additional or new account and the utilization of the line on the account. If you transfer a balance to a NEW account as part of the application/onboarding process, your credit score will be reduced. If you transfer a balance to an EXISTING account that you don't use regularly, your credit score will be reduced. If you transfer a balance to an EXISTING account that you use on a regular basis, your credit score will either remain the same or be reduced.


Do you keep or cancel old credit cards with no balance on them Why?

Keep them. This will raise your credit score. Having an active account that you do not use is an excellent way to raise your credit score.

Related questions

If you close open accounts will your credit score go up?

NO! THE OPPOSITE HAPPENS, YOUR CREDIT SCORE WILL LOWER. KEEP YOU ACCOUNTS OPEN EVEN IF YOU HAVE A ZERO BALANCE. NEVER, CLOSE AN ACCOUNT IF YOU CAN AVIOD THIS.


Does transferring balances effect your credit score or is it reported?

== == Yes, when you transfer a balance you are required to close that account. Closing an account decreases your score up to 20 points. You then increase the balance of a new account. Opening a new account decreases your score up 20 points. If you have a balance on an account that is already open and your transfer more money into that account you are increasing your balance; which will decrease your score up to 20 points. So, be careful with this process, and be aware of the affects.


What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?

I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).


Will your credit score drop if you close a zero balance credit card that has been open for only four months?

There are many factors in credit scoring. Closing an account should not make it drop in score. Especially if it is a small amount of credit available.


What does transferring credit card balance to new card do to credit?

Generally, after two (2) months, the balance transfer from one card to another only minorly impacts one's credit. The key is the additional or new account and the utilization of the line on the account. If you transfer a balance to a NEW account as part of the application/onboarding process, your credit score will be reduced. If you transfer a balance to an EXISTING account that you don't use regularly, your credit score will be reduced. If you transfer a balance to an EXISTING account that you use on a regular basis, your credit score will either remain the same or be reduced.


Do you keep or cancel old credit cards with no balance on them Why?

Keep them. This will raise your credit score. Having an active account that you do not use is an excellent way to raise your credit score.


If you close an account will it improve your credit score?

Closing accounts can actually lower your credit score. The reason is that a portion of the score is made up by considering the amount of credit available to you versus the amount you are actually using. For example, if you have a credit card with a $10,000 limit and a $5,000 balance you are using 50% of $10,000 available. If you pay off the $5,000 and leave the account open you are using 0% of $10,000 available and that helps your credit score. If you pay it off and close the account the available credit goes to zero which is worse for your score. Another component of your credit score is how long an account has been open, so you're better off having the same account for years rather than closing an older one and opening a new one. If you have too many accounts and really want to close some of them it's best to close the newest ones first and hang onto an account with a high credit limit and a good payment history. Closing any accounts will likely lower your score temporarily, but it will bounce back over time.


What is excessive amount owed for an account on a credit score report?

The "excessive amount owed" is a phrase used to indicate that a particular account is over 30% utilized. Utilization is the balance of the account divided by the credit line. SO, if you have a $2,000 balance and your credit line is $3,000, your utilization is 67%, which would trigger an "excessive amount owed" in a credit score explanation.


If you close a checking account wll it hurt your credit score?

Checking accounts are not normally reflected on a credit report.


Does carrying a balance on a credit card effect a credit score?

Yes but not significantly, unless it is a large amount, close to the maximum limit.


When an item goes off your credit report does your credit score increase?

When a derogatory item is removed from your credit report, them yes, your score increases. If you have a credit account with no derogatory items (late payments) and you close it, then your score is likely to decrease.


Does cancelling a credit card affect your credit score?

Yes, canceling a credit card always reduces your credit score. It never improves your credit score if you cancel a credit card account. If you have had the card for more than 2 years, or if you have a substantial amount of available credit at the time that you close the account, then the reduction in your credit score is even greater. However, if it makes sense to you to close the card, and you do not plan large purchases in the near future, your credit will recover without your feeling the difference.