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  • FIRST POST
    • LipMarck
    • By LipMarck 16th Apr 17, 2:02 AM
    • 7Posts
    • 1Thanks
    LipMarck
    If cancelling a credit card does it affect the credit score positively or negatively?
    • #1
    • 16th Apr 17, 2:02 AM
    If cancelling a credit card does it affect the credit score positively or negatively? 16th Apr 17 at 2:02 AM
    That's my question.

    Thanks.
Page 1
    • Ben8282
    • By Ben8282 16th Apr 17, 4:43 AM
    • 1,666 Posts
    • 676 Thanks
    Ben8282
    • #2
    • 16th Apr 17, 4:43 AM
    • #2
    • 16th Apr 17, 4:43 AM
    The score may be affected positively, negatively or not at all. It all depends.
    • zx81
    • By zx81 16th Apr 17, 5:02 AM
    • 11,168 Posts
    • 11,130 Thanks
    zx81
    • #3
    • 16th Apr 17, 5:02 AM
    • #3
    • 16th Apr 17, 5:02 AM
    The real question is how will it make you look to lenders.
    • LipMarck
    • By LipMarck 16th Apr 17, 5:06 PM
    • 7 Posts
    • 1 Thanks
    LipMarck
    • #4
    • 16th Apr 17, 5:06 PM
    • #4
    • 16th Apr 17, 5:06 PM
    Thank you, guys. So it's entirely dependable as it could go either way.
    • zx81
    • By zx81 16th Apr 17, 5:09 PM
    • 11,168 Posts
    • 11,130 Thanks
    zx81
    • #5
    • 16th Apr 17, 5:09 PM
    • #5
    • 16th Apr 17, 5:09 PM
    And entirely irrelevant.
    • phillw
    • By phillw 17th Apr 17, 10:22 AM
    • 347 Posts
    • 161 Thanks
    phillw
    • #6
    • 17th Apr 17, 10:22 AM
    • #6
    • 17th Apr 17, 10:22 AM
    Thank you, guys. So it's entirely dependable as it could go either way.
    Originally posted by LipMarck
    Your credit score is only visible to you and the company that calculates it, lenders have their own way of calculating risk based on your credit history. The credit score is calculated using an algorithm that tries to replicate how lenders will rate you, but it's as accurate as trying to predict the weather.

    No matter what happens with your score, I don't believe there are any lenders that are actively looking for customers who have credit cards that are not being used. They may either ignore it or see it as a reason to refuse giving you a credit card. It costs them money to send out cards and they'd rather send it to someone who will use it. There was a point when some credit card companies were refusing to issue cards (and in some cases cancelling credit cards) if you never missed a payment and always paid your balance in full every month. Not that I would recommend that as a strategy for increasing your chances, just that predicting what will happen is hard.
    • dresdendave
    • By dresdendave 18th Apr 17, 4:58 PM
    • 566 Posts
    • 604 Thanks
    dresdendave
    • #7
    • 18th Apr 17, 4:58 PM
    • #7
    • 18th Apr 17, 4:58 PM
    And entirely irrelevant.
    Originally posted by zx81

    It may be at the moment, but cancelling a CC may change it to "inconsequential" or even "meaningless".
    • Fireflyaway
    • By Fireflyaway 18th Apr 17, 5:05 PM
    • 805 Posts
    • 802 Thanks
    Fireflyaway
    • #8
    • 18th Apr 17, 5:05 PM
    • #8
    • 18th Apr 17, 5:05 PM
    I have just cancelled a credit card. I did so because it had a low limit which was considered a negative on clear score. Hopefully soon I will see what the impact is on my score.
    As others say it could go either way depending if its up to date or not, how much the balance is, how long you have had it etc. I've seen my score go up and down without explanation so who knows!
    • Jlawson118
    • By Jlawson118 18th Apr 17, 8:46 PM
    • 656 Posts
    • 73 Thanks
    Jlawson118
    • #9
    • 18th Apr 17, 8:46 PM
    • #9
    • 18th Apr 17, 8:46 PM
    It depends entirely on the card itself. I started off with an Aqua card and was shortly accepted for a reward card elsewhere, and upon closing the Aqua card, my score significantly dropped.

    However, I've closed other credit cards later on such as my First Direct Gold card and that never impacted my score at all.

    It all depends how you look to other lenders
    • zx81
    • By zx81 18th Apr 17, 9:19 PM
    • 11,168 Posts
    • 11,130 Thanks
    zx81
    It doesn't depend on the card at all.

    It depends on the CRAs random number generator. Or your unique set of circumstances, to be more generous.
    • tgon
    • By tgon 18th Apr 17, 10:51 PM
    • 571 Posts
    • 271 Thanks
    tgon
    Would a credit file be impacted if the card was rightfully cancelled due to fraudulent activity?
    • phillw
    • By phillw 18th Apr 17, 11:25 PM
    • 347 Posts
    • 161 Thanks
    phillw
    Would a credit file be impacted if the card was rightfully cancelled due to fraudulent activity?
    Originally posted by tgon
    Your credit file isn't affected by replacement cards.
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