Will Closing Store Credit Cards Hurt My Score?

Closing accounts can affect your credit scores.

Unless your score factors are indicating that you have too many open credit card accounts, it may be best to close them.

Can store credit cards hurt your score?

A store credit card may help you build credit — or tank your score. Credit expert John Ulzheimer warns that opening a new store card could hurt your credit score by: Having an outsize impact on your credit usage, which is a big factor in credit scores. Causing an inquiry on your credit.

Is it better to cancel unused credit cards or keep them?

Closing unused credit card accounts may sound like a good idea, but it could hurt your credit score because of increased utilization and, eventually, shorter credit history.

How much does your credit score drop when closing a credit card?

If you canceled the card with the $10,000 limit, you would cut your overall credit limit in half, which would double the percent of available credit you are using. That could hurt your credit score. With credit, older is better. The average age of your credit cards also affects your score.

What happens if you don’t use your store credit card?

The Danger of Having an Account Closed

If you decide not to use a card for a long period, it generally will not hurt your credit score. However, if a lender notices that period of inactivity and decides to close the account, it can cause your score to slip.

What credit score is needed for store cards?

There is no defined range for a fair credit score, but typically a FICO score between 580 and 669 are considered fair. For a Walmart credit card, a score of 660 or higher is recommended, but those with scores as low as 550 have reported success when applying for the card.

Is 3 credit cards too many?

Having too many cards can also negatively impact both your credit score and your ability to borrow money, she says. “Having three to five credit cards is usually not a problem. But if you find your credit card balances are increasing, that’s a danger signal. The solution is definitely not another card.”

Is it better to close a credit card or leave it open with a zero balance?

The standard advice is to keep unused accounts with zero balances open. The reason is that closing the accounts reduces your available credit, which makes it appear that your utilization rate, or balance-to-limit ratio, has suddenly increased.

Is it bad to have a lot of credit cards with zero balance?

Fortunately, not having a zero balance won’t hurt your credit score as long as the balance you do have isn’t too high (above 30 percent of the credit limit). Your credit score could be affected if you have a $0 balance for several months because you’re not using your credit scores.

Is it bad to have too many credit cards?

Having a lot of credit cards can hurt your credit score under any of the following conditions: You have so many payments that you haven’t been able to keep up with all them. Your outstanding debt is more than 30% of your total available credit. You have added too many cards in too short a time.