HSBC is killing my business, piece by piece

Re:HSBC is killing my business, piece by piece by appleiigs on Monday September 04, 2017 @12:58PM (#15169419)

I doubt closing a credit account hurts your score. Even if it does, you'd be more credit worthy to a lender because you have less credit outstanding/available. And the credit score can improve later if other credit is operating normally.

Credit score is only one item they look at for large loan like a mortgage. Smaller loans like a car or credit cards are already easy to get.

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Re:HSBC is killing my business, piece by piece by ams6110 on Monday September 04, 2017 @01:41PM (#15169687)

Credit scores depend in part on the ratio of your credit balances vs. available credit. So in that sense, closing an account can reduce your credit score since you now have less available credit.

I don't know how much impact it has, certainly less than late payments or accounts in collections, but it can have some effect.

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Re:HSBC is killing my business, piece by piece by scarmig on Monday September 04, 2017 @02:13PM (#15169870)

It certainly can hurt your score. One small but real component is the average age of account.

Also, ratio of credit used to credit available is also a negative signal, which would increase when you close an account.

Those are somewhere between minor and middling factors. It's stupid we have to play the stupid credit score game, but a small decrease in interest rates can save you thousands when it comes to your mortgage.

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