How Much Will Canceling Credit Cards Affect Credit Score (pay, rent, accounts)

[Everdeen]

I'm sure this has been talked about before, but I don't even know how to search for it on this forum.

I want to get rid of my credit cards. I've been told and have read conflicting opinions on how much it affects credit scores. My scores are excellent, and I'd like to keep it that way.

[chet everett]

Believe it or not the folks that run Experian, one of the major credit rating services, actually address this situation:
Deciding whether to cancel credit cards you don

...

To maintain a strong credit history, you always need to have one or more credit card accounts open and use them responsibly. However, if you just have more cards than you need, the decision becomes a little more difficult.

If you are planning to apply for credit in the near future, especially for a major purchase such as a home or car, you should use caution in closing accounts.

...it is contrary to virtually everything you hear and read, but don’t obsess about credit scores. Instead, do what is best for you financially and emotionally.

The formula that gave you an "excellent score" was based on the fact that you have been responsible in your use of credit; if the accounts you have are "current" in the sense of making payments on the cards and plenty of "available credit limit" that tells lenders that you are not likely to do things that cost them money, like fail to pay your bills. They like that! If you have NO cards that creates a problem for them -- are you going to go live "off the grid"?

It would be foolish to get rid of ALL your credit cards as that would make it all but impossible to do things like rent a car, reserve a hotel room or even get approved for some jobs / apartments -- Personal Finance 101: Why Do I Need Credit At All? - The Simple Dollar

If you have a just a couple of credit cards that have nice benefits it would be wise to maximize your rewards -- Card Coupling: Pair Up Your Credit Cards to Maximize Rewards - NerdWallet

[fearlessly]

Is your credit score going to be important for anything in particular over the next year? Is this the oldest CC you have?

If no to both questions, go ahead and cancel it.

[rjm1cc]

I would not cancel no fee cards. I would cancel any card that has a fee. If you do not have no fee cards I would get several before canceling.
I would also ask for an increase in credit limit on the cards I was keeping.
There is no need to use the cards if you do not want to.

[Pitt Chick]

Originally Posted by Everdeen

I want to get rid of my credit cards. I've been told and have read conflicting opinions on how much it affects credit scores. My scores are excellent, and I'd like to keep it that way.

All of them?

The dip in your score will be dependent upon how much credit you cancel and how old those credit lines are.

[wheelsup]

Keep the oldest and cancel the rest. I went on a binge a few years ago opening and closing accounts for bonus dollars and ended up actually raising my score. I don't think it really matters beyond a certain point in the big scheme of things.

[MLSFan]

Never really hurt mine, not noticable though

but you could always just close the card and keep the account... so the account isn't closed

The biggest thing is probably the lose of the credit available so it increases utilization but if you don't use much then it wont matter

[Everdeen]

I'm not going to make any major purchases in the next year. I just don't want to shoot myself in the foot in case down the road we want to buy a different house.

All my cards are no fee.

The oldest card is about 30 years old.

Originally Posted by eyeb

Never really hurt mine, not noticable though

but you could always just close the card and keep the account... so the account isn't closed

The biggest thing is probably the lose of the credit available so it increases utilization but if you don't use much then it wont matter

I had no idea that you could do this. The major credit card issuers go along with that?

[NewbieHere]

I cancelled a few recently, not a huge hit. I still have excellent credit.

[MLSFan]

@everdeen
Just call them and tell them you want to cancel the card but keep the account for future cards, then just never sign up for one

I have accounts at all the major companies and it seems to help because when I churn for rewards I don't get rejected since I'm an old member. Then I cancel card after getting bonus. And still have the account for later.