How Does Closing My American Express Card Affect My Credit Score?

How Does Closing My American Express Card Affect My Credit Score?

American Express, a multinational financial service, is a popular choice among consumers. Owning a credit card such as an American Express credit card is a great way to achieve a high credit score. This is important because having a positive credit score is needed to encourage lenders to issue credit to you.

You may need to close your American Express card for various reasons. It's helpful to be aware of the ways this will affect your credit score. If you have any questions about closing your American Express card and the effect that it will have on your credit score, reach out to American Express.

Ways That Closing Your American Express Card Affects Your Credit Score

It's important to understand the ways that closing your American Express card will affect your credit score. An awareness of how credit scores work will help you make an informed decision about closing your American Express credit card.

1. You'll be reducing the average age of all your accounts associated with credit cards when you close your account.

2. Your goal is to have a low utilization rate to have a better FICO score. When you cause the overall amount of credit available to you to fall, you are causing your credit utilization to rise. This will affect your FICO score and may cause your credit history to become shortened.

3. You want to have reliable credit as a consumer. Before approving a loan application or a credit card application, some lenders will want to confirm that you have a long credit history. Closing your American Express card can negatively affect your credit history.

If you have any questions about closing your American Express card and the ways doing so can affect your credit score, contact American Express.