Ask Terry Questions Results of closing a credit card

Results of closing a credit card

By Terry Savage on July 02, 2024 | Credit/Debt

Hi Terry,
I have had a credit card with Macys for almost 10 years. I rarely carry over a balance. Yesterday I received a “update on the important changes to your credit card agreement. It read that after 8/7/24 the APR would be 34.49%! (from 12.9) If I close this account would it affect my credit? I just think that amount is crazy. I have a 833 credit score now.

Terry Says

Part of your credit score is based on the length of your credit history.  So yes, if this is your oldest card, it could impact your score for a while.  But since you don’t pay an annual fee, and don’t intend to charge (or at least don’t intend to carry a balance on this card), why not just keep it?  On the other hand, if you have a lot of cards with a longer history, you can safely close this one.



a personal
finance question