I have heard closing down cc's will negatively affect your credit score, but never known how long and to what degree. I have several cc's I have had open for years and and do not use, like at all. Right now one of the bureaus has my score at 703. They just sit open with 0 balances and huge interest rates. I just closed down a small loc from a bank, but was thinking of closing down 2 of the cc's that I never use and have no desire to do so. I have a couple that do use and in addition my loc at my new bank has a decently low interest rate so I would probably leave that one open for now. My credit report suggested my credit score was high due to my debt vs available credit is only at 10%. I have no interest in buying any major purchases for probably 2-3 years at least such as a mortgage, and my car is in good shape and have no need for an auto loan anytime soon either, nor to I plan to have one again as I hope to only buy cars in cash for the rest of my life. So should I shut down some cards now and that will give my credit time to bounce back?
I don't know details on how long or how much it will affect your credit score but I do know that it will. It dropped mine when I closed out the cc I used to have. Part of your credit score comes from the length of time that you've had credit so that's part of what will drop it if that was your oldest/longest standing credit account. I would likely keep the oldest line of credit for that reason and then whatever the "best" ones were as far as credit limit and interest rates and close the rest.
Michelle mom to DD , DS , & lil DD and spending my days
With the information you listed, you will be fine to close down the accounts. The only caveat is that you should not close down your longest-established account. If one of the cards in question is your oldest credit card, just buy something small with it every few months and pay it off. If you have a card older than both of the cards you want to close, you can close them both.
You could always go to credit karma and run the scenario. Ours dropped around 15 points when I closed out some of our credit cards (including our oldest) knowing that I didn't want to use them/ deal with them anymore.
That said, in your position I would NOT do that. When mine dropped it still remained above 800. There are different categories of credit scores and if you dropped below 700 you may be in different category. That *could* increase your rates for car insurance and if you *needed* credit you might be less likely to be able to get it. Going from 703 to 693 doesn't seem like a big deal, but it drops you from "really good" to average: