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How bad did I fuck up? (lemmy.world)

submitted 1 week ago by [email protected] to c/[email protected]

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I signed up for an American Express preferred Blue card and got approved for a limit of $25,000. I have a 830 credit score. I realized that the places I shop don't accept that card and you have to pay for it yearly so I canceled it.

Then I decided I was going to get a Costco Visa. Once I signed up the credit limit was only $5,000. So I canceled that one. So I stupidly signed up for a Wells Fargo Visa and that was $4,000.

Don't leave yet and please don't make fun of me but I'm not done being stupid. I decided I wanted a different American Express card and when I signed up for it the credit limit was $2,000 so I canceled that one.

Again I know I'm fucking stupid but how bad did I just fuck up my credit?

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[–] [email protected] 2 points 1 week ago

Iirc, closing an account impacts your credit not because you cancelled your account, but because it impacts your debt/credit ratio.

You have 2 credit cards. Card A has a 10k credit and 2k balance. Card B has 10k credit and 0 balance.

So your ratio is 2k/20k or 10%.

If you cancel card B, your credit line is now 2k/10k, which is 20%. This increases your credit utilization, which impacts your score.

Opening and closing a bunch of cards without any balance shouldn't have a significant impact on your score, maybe a few points.

Hard inquiries can be bad but most credit cards use soft inquiries nowadays anyway