Question about credit scores...

Does it bring down your credit score to pay off a credit card and close the account? My mom said yes but DH said no...

Also, if you open a new credit card does it bring your scored down by alot of points?

I want to pay off a credit card with high interest and open one that's offering me 0%! Is that bad?

Re: Question about credit scores...

I was told YES!
and I recently did this and left the acct open and empty.

If you open a new card, yes, it can lower you score because it has to be run in order to get the card.

Do the balance transfer but hang on to existing card..dont close it and what I did was lower the balance on card to a min.

Re: Question about credit scores...

yes- my DH deals with credit all day- leave the card open- it will shorten your credit history to close it and it will be better for the available credit ratio

the old way of thinking was to close the account- but that is not the rule anymore!

Re: Question about credit scores...

I was told to not close out accounts as that lowers your score. What I think you should do is pay it off and then cut it up, eventually they will close the account for non-activity

Re: Question about credit scores...

If you have other debt then if you close the CC you have a higher debt:credit ratio.

Also, length of credit hx is only 15% of your score.

If you close your account it still shows on your credit report and it will show what type of hx you've had with it (i.e. late payments, defaulted, etc).

I closed my oldest CC right before we applied for a mortgage and it had no impact on my score.

Check out myfico.com for some info.