If a credit card account is closed by the account holder or the granter, will you still benefit from the years of history that has been established from that credit card? I have been reading on the internet about it and I have found conflicting answers. Which one is correct?
The closed account in good standing will stay on your credit report for up to 10 years before it drops off. Once it drops off, it will obviously not be doing anything to help your credit scores. If it's your oldest card, I recommend keeping it open unless it has an annual fee that just isn't worth paying anymore because you're utilizing other cards. Also, remember that you will lose the available credit when the account is closed, which can hurt your CU ratio and your scores. Just keep that in mind before closing the card.
Ok, I thought I read on myfico.com that even if the account is closed that the payment history will still have an impact on your credit score. It makes sense that once the account is closed the credit limit will not be counted into your utilization. Interesting... Thanks! Heather with BoostMyScore.NET
