Closing accounts and credit score

I’ve heard and read that closing accounts looks bad on one’s credit report. Does this count for main VISA and Master Cards AND ‘Store’ cards?

I have a Target VISA I would like to pay off and lose. I cut the card up, because that VISA Logo makes it too easy to use anywhere.

I have a Penny’s card I have had from 1993 and would like to perhaps close it because I keep resorting to it for clothes and shoes. My feet (Diabetes too) are narrow and they have my sizes. I cannot go to payless or whatever, as they haven’t got the proper sizes for my feet… I owe them about $400.00 and when it is paid off I’m thinking of closing it.

I’m OK on shoes and such, so I was thinking of unloading some of the plastic here. No, I don’t want a great score so I can borrow, I just want a clean rep mainly. Opinions on closing store accounts would be read with interest.

credit scoreI believe it looks better to NOT close them. Just cut them up and you cannot use them and you are safe. I dont plan on closing any of mine. I forget how it was explained to me but it has something to do with the amount of total credit you can get and when you close them it effects that somehow.

DO NOT! I REPEAT – DO NOT! Close your accounts.. Your open accounts, no matter the circumstances are your credit “history” if you close them, you are deleting part of your past. Keeping them open shows that that company has entrusted you with credit throughout the years. If you close your account, your credit score will drop immediately. I just bought a house and learned this. I thought the same thing, pay off the card and close the account, I called the company to close it. My lender scolded me and had me call back to cancel my cancellation of the card. Instead just keep the debt on your cards below 50% of the limits.

Just my opinion here but if you have had that JCPenny card since 1993 I personally would’nt close it, unless your other cards are in the same age range or they charge you an annual fee etc. The longer you have had accounts open the better your score.

Don’t some cards close themselves if they’re inactive for a while? That’s why they tell you to use it once a year or something?

So long as everyone knows you just keep playing their game. A FICO score is an “I LOVE DEBT” score. If you read how the fair Isaac works, having a bunch of credit cards with nothing on them can also hurt you. Particularly when you are trying to purchase a house with marginal credit or nothing down. They figure you will turn around and max the cards on furniture and improvements and not make your mortgage. Could turn you down or give you less than optimal rates.

I had a card send me a letter once it was funny…It said something like “due to business reasons we are closing your account” because I hadn’t used my Discover Card in over 5 years. So there are some that will close automatically, but I don’t think there are many of them. I at one time had 2 credit cards sending me statements back because I had an extra dollar on it, so they sent me a statement every month. I was like sweet, I’ll just make them send me a statement and waste money because I have a credit of $1.00. That lasted about 6 months, then they sent me a check and closed it lol. Maybe I’ll do that on some other ones just for kicks.

Updated: February 5, 2016 — 8:55 pm