Cancellation of Unused Cards May Play Some Role in Credit Scores
By Nancy Trejos
Sunday, December 28, 2008; F05
Helen Galanoplos tried to cancel her American Express card last year because she no longer wanted to pay an annual fee. But, she said, the customer service representative told her that her credit score could go down as a result.
Then last week, she received a letter from Chase notifying her that her credit card was to be canceled because she had not used it in two years. The bank said it would forward that information to the companies that produce credit reports.
A retiree who does not believe in carrying a credit card balance, she has made it a habit to pay off her cards in full each month. (She also has a Capital One card.) So she didn't understand why her score would go down.
More..Nancy Trejos - It's Often Unclear What Happens to Credit Scores When Unused Cards are Canceled
