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when you pay off your credit cards and then cancel them..i heard your credit score goes down is that true ?

2 Responses to “When you cancel credit cards do your score go down ?”

1. Judy says:

   April 15, 2009 at 1:00 pm

   When you pay your cards off your credit score can skyrocket.
   But when you close them, you are reducing your credit score.
   Upon closing you are reducing the total available credit you have.
   Also if you close your oldest accounts you are wiping out the length of your credit history.
   15% of your fico is that history.
   For top 800+ scores, use your credit card for things you need like gas, and pay them in full each month. Never pay a penny interest.
   /
2. stephenweinstein says:

   April 17, 2009 at 1:08 pm

   Sometimes, but it can also go up.

   1. If you cancel ALL your cards, then your score will go down, not because you canceled cards, but because you no longer have any accounts left that are not canceled.

   2. If you cancel your OLDEST account, then your score will usually go down, not because you canceled a card, but because you no longer have any accounts that old that are not canceled. The older an account you have, the higher your score. Having ONLY new accounts lowers your score.

   3. If you keep your OLDEST accounts and cancel one of more of your newer accounts, then you score MAY go up OR down. This depends on your credit limits.