Does closing a paid-off credit card account impact your credit report?

There are three reasons for this, the first is that closing a credit card account could result in a decrease in the ratio of the total amount of credit you have available to the amount of credit you actually use (your debt to credit utilization ratio), which could have a negative impact on your credit scores.

Second, if you have a credit card account that you’ve had for a long time, shutting it might have the effect of lowering the average age of accounts that appears on your credit history, which is another element that is often considered when credit scores are determined.

And last, if you have a credit card that is paid off but you haven’t used it in a particular amount of time, the lender may decide that the card is no longer in use and shut it.

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