Does canceling a credit card affect your credit score

[manning]

I got a credit card from Mirrill Lynch. The thing is I never asked for one. Don't want it.

This involves an account that I am an executor of. He died last year and I sent them a death cretificate to take over to settle his estate.

On top of that they also issued him a credit card. As Forest said "stupid is as stupid does"

 

[runwad]

So you haven't used it or had it for long? From watching Suze Orman she says that its the debit to credit limit ratio that is taken into account when figuring out your FICO score.

I'd say if you never used this card I'd close it and not worry about it. If it had a high credit balance and you had debt close to that balance then no don't close it cause it could affect your score in that instance.

Hope that's not too confusing, I don't really know a better way to explain it. But I"m sure someone will come along who does.

 

[BridgetBordeaux]

Taking the PP info and adding to it............

Credit score is impacted by factors like length of credit card ownership and average monthly balance compared to credit limit.

I am going to make an assumption here: the card is not very old to you and has served its purpose (and is paid off). If my assumptions are correct, then kill the card.

If you want to keep it, it will only slightly drag down the numerical average age of your all your credit accounts. I assume you have more than one. If you have very few credit accounts, and this is the newest, then killing it will improve your credit score.

Hope this helps.

 

[manning]

It's a new card. Never been used. Never asked for it. Don't want it.

 

[acourtwdw]

It depends on the rest of your credit picture assuming that the card is connected to your social security number.
Here is a break down of how this may change your credit score.
Card A with a limit of $1000, outstanding balance $750
Card B with a limit of $1000, outstandind balance $0

Your current card limits are $2000, with outstanding balances of $750 which makes your debt ratio 37.5%.

If you close card B and still have a balance of $750 on card A, your debt ratio just shot up to 75%.

Only you or your financial advisor can figure out if this card should be closed. The picture that you painted for us is incomplete.

 

[TheRustyScupper]

1) As long as you don't have a lot of debt, not much.
2) You will see a slight drop, but it comes back.

3) If you have a lot of debt, your debt-to-limit ratio goes up.
4) And your FICO score goes down.

 

[manning]

1) As long as you don't have a lot of debt, not much.
2) You will see a slight drop, but it comes back.

3) If you have a lot of debt, your debt-to-limit ratio goes up.
4) And your FICO score goes down.

This fits my pattern, fortunately.

Just tees me off that they take it upon themselves to issue me a card. The only reason I got involved with Merrill lynch is a relative died and I am the executor. I am also one of the heirs. I was going take over this account as my portion of the inherentance. Considering what they have done I will be taking my business else where.


I alone want to decide if I need another credit card.