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No. of Recommendations: 4
I've always heard it will ding your rating if you close them.

Sorry, that is a myth. It depends completely on what the rest of your individual credit file looks like - age of the accounts you are closing, age of accounts (if any) remaining open, remaining available credit, how much of that credit you've utilized, mix of other open accounts, etc. There are too many factors that can influence your credit score to say "Closing an account will always ding your score."

If one of the reasons given in your credit score report is "too many open accounts" then closing an account could actually improve your score. On the other hand, if one of the reasons given in your credit score report is "utilization of available credit too high" then closing an account that will reduce your available credit will probably decrease your score. Or, it could be that there is enough history and other available credit that closing an account will have no impact, either positive or negative, on your score.

So, as with almost everything credit scoring, the answer is "it depends" and unless someone provides specifics about the reasons on their credit scoring report, it's difficult to predict what will happen to their credit score if an account is closed.

There are several credit score simulators available that can be used to estimate the impact closing account(s) will have, but even those get it wrong sometimes.

AJ
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