How much does closing a credit card actually affect your credit?

I have two credit cards. One is a CapitalOne card with a $750 credit limit. I was recently talked in to getting a new credit card with WellsFargo with a $1000 credit limit. I don't feel safe having that amount anymore. I want to pay it all off and close it. I've had it for about a year. I've had the other one for about five years. Is that really bad for my credit score?|||It's always a bad idea to close an account. Your credit score is figured on the amount of creditors you have vs the amount owing. So less cards, larger debt.. get it? Stop using it, pay it off and shred the card and move on. That's the best way|||Just because you have a credit limit does not mean you have to spend it all.





Carrying balances of more than 30% of your limit hurts your score. If you close a credit card, your lower your overall limit which could increase your debt to limit percentage if you carry balances. If you don't carry balances, this makes no difference.





Closed accounts in good standing remain on your credit report for at least 10 years. They just don't count as much as open, active accounts. If you have an extensive credit history, you may not even notice the difference. If your history is limited, the impact would be larger.





Having two credit cards with theses limits is certainly not out of line. It can be good to have cards with two different banks. However, if you do not feel comfortable with two cards and this much available limit, by all means close the card. Pay it off completely. Then close the account via letter. Request written confirmation that the account is closed and 0 balance. Keep this confirmation forever.





Keep the older CapOne account as this has a longer history. Closing the one year old Wells Fargo, probably won't ding your score much.|||Both keeping open credit cards and closing credit card can be good and can be bad.





If you have $1750 worth of credit, but keep your balance near its maximum, then that is bad.


If you have too little credit, then you have no track record and THAT too is bad.


Just have some credit, use the card each month and keep your balance as low as possible to show that you are a competent payer.|||Since it is a relatively new card, closing the card won't affect your credit score like closing an older card would. What it will do is decrease your overall credit limit ($1750 down to $750) so your debt to credit ratio will increase (assuming you have a balance on your CapitalOne). All in all, the credit limits are small, the Wells Fargo card is quite new, so you won't see a big drop on your score... if any.|||It affects your credit a lot. They do that to keep you from closing it.