[Nishu]

You guys heard that paying off and closing your credit cards can actually hurt your credit score by changing your debt to credit ratio, right?

We just paid off a credit card a few weeks ago and I noticed something funny when I checked his credit report. The credit card in question isn't listed in his revolving account section. On all three credit reports, it's listed as "Real Estate/Other." This is weird and I have no idea why it would be listed as such. The point is, the credit card has no affect on his debt to credit ratio because it's not listed as a revolving account so closing it isn't going to affect his credit report except to lower the number of installment loans he has.

So I guess my point is, if you're considering keeping a credit card open because of your credit rating, check your credit report first to make sure it's even listed as a revolving account. If it's not, you can close it and not worry about a hit on your credit report.

Btw, this CC was a Chase Southwest card.

 

[Sassyclass]

Well what a nice surprise. Ummm I wouldn't correct them on this either. BTW I love your new avatar, very cute.

Cat

 

[Nishu]

Well what a nice surprise. Ummm I wouldn't correct them on this either. BTW I love your new avatar, very cute.

Cat

Ah, thanks! It's the sunflower from the game plants vs zombies.

 

[druthb00]

All of my CC's are listed as revolving accts. (& I have a Chase too, but it's a Visa Freedom card.) It still isn't going to stop me from closing a Cap 1 MC acct. that decided earlier this year that I now get to pay them an annual fee ($39.) They can GTH. Pretty cool that closing your acct. won't affect you guys, though

 

[littleplum]

Weird. My husband has the same card, and it shows up under his revolving accounts.

Is it doing that on all three credit reports?

 

[Nishu]

Weird. My husband has the same card, and it shows up under his revolving accounts.

Is it doing that on all three credit reports?

Yes, all three.

 

[Pianolady]

You guys heard that paying off and closing your credit cards can actually hurt your credit score by changing your debt to credit ratio, right?

It does a little, but it's always been short-term in our experience, and not much of a credit score hit. Not enough to worry about, especially if there are no plans to purchase anything big on credit in the near future.