Does Closing Credit Card Accounts With a Zero Balance Harm My FICO Score?

Your FICO credit score will be harmed if you close a credit card with a zero balance. The size of the drop will depend on several factors, including how long you've had credit and how many other cards you have.

Function

If you close one of your credit cards, it will eventually stop being reported on your credit report. According to the Motley Fool, positive credit history will remain on your credit report indefinitely as long as the card is open. If you close it, that information will drop off your credit report and your payment history, which accounts for 35 percent of your score, will suffer.

Time Frame

Ten percent of your FICO credit score depends on your length of credit history. If the credit card you close is one of your older credit cards, your length of credit history will be shortened, lowering your score.

Considerations

Your credit score considers how much of your credit limit you are using. When you close a credit card with no balance, you instantly are using more of your available credit because you have shrunk your total credit limit without decreasing your balances.