Comments on: Can credit card companies close your accounts without warning? How does it affect your credit score?

By: bdancer222

bdancer222 — Sat, 11 Apr 2009 06:25:55 +0000

Yes, they can close your account. In fact, I’m surprised it stayed open 18 months if you never used it.

Closing the account will only afffect your score if you are carrying balances on other credit cards. About a third of your score is based on the ratio of credit card debt to limit. When you close an account, you lower the limit. Thus making the debt percentage larger. Carrying balances of more than 30% will hurt your score.

By: wildbirdie

wildbirdie — Thu, 09 Apr 2009 05:04:14 +0000

Each account is a potential borrower that they have to worry about funding. If you don’t use your account, they will close it and give your slot to someone else.

By: bud68

bud68 — Mon, 06 Apr 2009 14:20:03 +0000

Yes they can close your account “just like that.” To keep an account open, you need to use it once or twice a year, minimum.

By: Stealth

Stealth — Sat, 04 Apr 2009 08:36:07 +0000

Canceling a credit card can ding your credit because part of your credit score is based on something called a debt-to-credit ratio. When you cancel a credit card, you lower the amount of credit available to you, making that ratio look bigger (and more risky) to creditors..

15 percent Length of Credit History: “In general, a credit report containing a list of accounts opened for a long time will help your credit score. The score considers your oldest account and the average age of all accounts.”

35 percent Payment History: “Having a long history making of payments on time and no missed payments on all credit accounts is one of the most important items lenders look for

By: Ms. Angel..

Ms. Angel.. — Thu, 02 Apr 2009 23:10:42 +0000

yes they can, read your terms and agreement you received when you applied and accepted the credit card. All credit card usually work different. Or contact them at their 1-800 #.