How Does Closing My Capital One Card Affect My Credit Score?

Capital One cardholders considering closing their Capital One accounts are advised of the three ways this can hurt their overall credit score. They are given detailed information on credit utilization, length of credit history, and credit mix. They are also provided information on reasons they may still need to close the account.

One of the most important aspects of managing your financial situation is looking at your credit card usage. If you have a Capital One card, you may be considering closing it as part of your financial management; however, you need to know how it may affect your overall credit score. How does closing your Capital One card affect your credit score? You can contact Capital One customer support here, and below are ways closing the card can impact your credit rating.

How It Can Hurt Your Credit

Closing your Capital One credit card can have a negative impact on your overall credit score. The ways it can cause your score to go down are outlined below.

  1. Credit Utilization: The optimal amount of credit you should be utilizing is 30% of your overall available credit. Closing your Capital One card lowers your overall available credit, which could make your utilization percentage go over the recommended amount. For example, if you have a credit limit of $1000 on your Capital One card with a zero balance and a $2000 limit on a personal line of credit with a $900 balance, your current credit utilization is 30%. If you close the Capital One card, your overall available credit is now $2000, which means you are now using 45%.
  2. Length of Credit History: Your credit score is also calculated by looking at the length of time you have had credit. The length of time is calculated by taking the age of your oldest and newest accounts and dividing them by the total number of accounts. If your Capital One card is your oldest open account, you run the risk of shortening the length of your credit history.
  3. Credit Mix: A good mix of different types of credit can show that you can handle many different types of credit responsibly. If you have an auto loan (installment plan) and a credit card (revolving credit), this shows you have a good mix. Closing your Capital One card will not reflect a good mix of credit on your overall credit report.

Why You May Still Want to Close Your Card

While it is not always advisable to close a credit card, there are some circumstances when closing your Capital One card may be to your advantage. These reasons are discussed below.

  1. Less than Responsible Utilization: If you find that you cannot handle the responsibilities of your Capital One card, you may want to consider closing it. While closing the card may hurt your score in the short term, irresponsible usage could cause much longer term damage to your credit score.
  2. High Annual Fee: Some cards carry a very high annual fee. If you close the card, the fee will no longer be a financial obligation you have to meet.
  3. You're Graduating to a Better Card: If you have a secure Capital One card, you may be ready to graduate to an unsecured card because your credit score has improved.

Closing your Capital One card will have an impact on your overall credit score. Even if the score drops just a few points, it could take a while to regain the loss. For more information or assistance, contact Capital One here.

Why Did GetHuman Write "How Does Closing My Capital One Card Affect My Credit Score?"?

After thousands of Capital One customers came to GetHuman in search of an answer to this problem (and many others), we decided it was time to publish instructions. So we put together How Does Closing My Capital One Card Affect My Credit Score? to try to help. It takes time to get through these steps according to other users, including time spent working through each step and contacting Capital One if necessary. Best of luck and please let us know if you successfully resolve your issue with guidance from this page.

Why does GetHuman Write How-to Guides for Capital One Problems?

GetHuman has been working for over 10 years on sourcing information about big organizations like Capital One in order to help customers resolve customer service issues faster. We started with contact information and fastest ways to reach a human at big companies. Particularly ones with slow or complicated IVR or phone menu systems. Or companies that have self-serve help forums instead of a customer service department. From there, we realized that consumers still needed more detailed help solving the most common problems, so we expanded to this set of guides, which grows every day. And if you spot any issues with our How Does Closing My Capital One Card Affect My Credit Score? guide, please let us know by sending us feedback. We want to be as helpful as possible. If you appreciated this guide, please share it with your favorite people. Our free information and tools is powered by you, the customer. The more people that use it, the better it gets.

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