Good Credit Score Not Good Enough Anymore

to Fly:

Right. but closing accounts more often than not, reduces your credit score because you've reduced your ability use credit. When that happens, other lenders see that happen on your credit report & then raise their interest rate, lower their limit and/or close your account because suddenly you look like a higher risk. And then, the customers that have been making their pmnts on time every month - using their credit cards - now can't. They lose the ability to pay off this months utility bill, gasoline expense, etc off next month because out of nowhere, their account or credit limit was cut off.

Further, to those who carry balances and pay on time, a random increase in interest rate (just because they can) means suddenly more $$ out the door with zero additional gain.

First, closing OLD accounts can effect your credit, but simply closing accounts has very little (if any) effect. Second, once you close the account, you lock the rate BEFORE the rate increase, which means no additional money coming out. Third, have you ever tried to call and cancel a credit card? Nine times out of ten (even today), they will give you the old rate just to stay. Either way, you aren't out any additional money.
 
^^yeah, seems I've heard to leave em open with no balance.

used to be the case. but those lenders are getting sneaky.

it's all about the bottom line. Theirs.

if you don't use your card they can just close the account. They don't need to waste the $$ sending you an empty statement. ALSO, this give you a reason to call them back & 'open' another account at higher rates. it doesn't really matter anyway right? you don't use the card. The 'catch' is that when you do, you pay more. If you don't, they close that account too, & then your score drops again.
 
who told you this? they're dead wrong.

Look here for example.

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

Do you see anywhere that closing a credit card can affect you, other than if its an old card?

And again. Say your credit drops 1000 points after closing some card and other cards want to raise your rates. You can do the same thing! Call them and close the card, which locks you in at the old rate.

edit: And read this too. Also from FICO
http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-1.aspx
 
who told you this? they're dead wrong.

As long as your debt to credit ratio doesn't suffer then there really isn't a problem as long as you don't close old account (like Zachy-Poo said). I just closed four accounts for them trying to jack up my interest rates and my score went up 21 pts this month alone.