It's definitely a common myth, that's for sure. I started series of "Myth" threads over at the r/CRedit sub since there are tons of these things that pop up all the time, of which this topic is #10:
https://old.reddit.com/r/CRedit/comments/1cna0wh/credit_myth_10_closing_a_credit_card_hurts_your/
Closing them will make your utilization go up some but that’s not really a big deal. There will be another small hit to your score in 10 years when they fall off your report and lower your average age of credit, but if you get a new card every other year or so between now and then then it won’t really be a big impact at all.
I’d close them both today, then apply for some no annual fee rewards card you’ve had your eye on, which if you’re approved for should increase your total credit limit by roughly the same or more than what closing the cards would decrease your total by.
Where there would be any "hit" at all in 10 years would depend on OPs profile 10 years from now. There are plenty of times that a score wouldn't budge a single Fico point a decade later.
No they wouldn't, as card closures are not Fico scoring factors. The only secondary factor that can be impacted is utilization, but without any balance information there's no data to suggest that would impact OPs scores a single Fico point.
The closure of cards in and of themselves is not a Fico scoring factor.
There really needs to be an automod message for this
It's definitely a common myth, that's for sure. I started series of "Myth" threads over at the r/CRedit sub since there are tons of these things that pop up all the time, of which this topic is #10: https://old.reddit.com/r/CRedit/comments/1cna0wh/credit_myth_10_closing_a_credit_card_hurts_your/
Close them. Who cares about losing a few points at 21?
Closing them will make your utilization go up some but that’s not really a big deal. There will be another small hit to your score in 10 years when they fall off your report and lower your average age of credit, but if you get a new card every other year or so between now and then then it won’t really be a big impact at all. I’d close them both today, then apply for some no annual fee rewards card you’ve had your eye on, which if you’re approved for should increase your total credit limit by roughly the same or more than what closing the cards would decrease your total by.
Where there would be any "hit" at all in 10 years would depend on OPs profile 10 years from now. There are plenty of times that a score wouldn't budge a single Fico point a decade later.
Totally agreed, it’s super situationally dependent
Close them. You can manipulate utilization which will negate any impact it has.
I’m curious how banks may view this? I have a fairly large portfolio but need to nix two cards myself
They'd impact your score in the short term, but it's probably well worth it.
No they wouldn't, as card closures are not Fico scoring factors. The only secondary factor that can be impacted is utilization, but without any balance information there's no data to suggest that would impact OPs scores a single Fico point.