Originally Posted by
pharmawalk
With all respect, I think the above statement is absolutely incorrect. Cards being closed isn't a negative factor. Cards are closed by one's initiation all the time. Likewise, cards get closed by the issuer for non-use all the time. I have over an 800 FICO score and have plenty of accounts I closed or the issuer closed through inactivity.<br /><br />Matter of point, I just closed 5 CC accounts (out of 23) because I wasn't using them anymore and my FICO score went up after that.<br /><br />What really counts is your credit utilization, not who closed the cards as long as all payments are historically on time.
<br /><br />On a very basic level, closing an account automatically increases your utilization ratio. Also closing an account affects your average length of account history. Both of these are negative factors in your FICO score. This is why you should not close your oldest accounts or high credit limit accounts. With that said, the effect is minimal on low limit accounts or recent accounts. I don;t know the other factors that increased your score but it could be several. You may have simply paid a large balance from the prior month. With all this said, I personally do close and open accounts and my Fico is ~800. I am just conscious of the formula and the most importatnt item for your score, is never pay late. I am not aware of any difference in the formula between you closing an account or an issuer closing an account, all else being equal.