Closing accounts with a zero balance
Date: Fri, 02/09/2007 - 11:43
I have accounts that have been open for years and have had a zero balance for a long time. I heard that closing your accounts will actually hurt your credit score. Is this true?
It will reduce the amount of available credit you have, therefor
It will reduce the amount of available credit you have, therefore reducing your debt to income ratio. That is why it brings down your score.
The impact is seen just when you are applying for new credit. Wh
The impact is seen just when you are applying for new credit. When you close any unused account, or open a new account during that time, the credit history gets very short and because of the less number of accounts. Any new account opened during this time will have no proven track record and the lenders will have limited options to research about your financial history.
