Uploaded July 2024 | Updated September 2026, 2 weeks ago
I closed about 15 accounts and you are about to see exactly what has happened to my credit score in just a moment. The main reason people ask If it’s okay to close accounts is because they get worried about their credit score.
I have also frozen my TransUnion, Equifax, and even my Experian accounts. No new lines of credit can be opened in my name, and no credit cards exist to report anything.
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1. The negative effect of closing a credit card
Utilization Ratio may change:
- This is the percentage of credit you are using, compared to how much you have been giving
For example, I give you a credit line of $500 and Chase gives you another of $500
- Right now you are using about $300 and have a utilization of 30% because you are only using 30%
- But you close me out, and now you only have chase with $500, your utilization goes up to 60% which not good
- You usually want this below 10% anyways
Reduced your credit Length
- Closing your oldest card can lower your length which is about 15% of your score
Your credit mix
- They want to know if you can handle different types of debt
Access to Capital
- Once you close that’s it, you can't borrow that money anymore
Truth is this: if you were using a product that you no longer cared about, like Tmobile for example ( and they tell you this)
- If you cancel yes you'll save $100 with another company
- But no more international roaming
- No more free Netflix
- Not more tmobile Tuesday
- Your response would be, who cares
2. What people tell you
- If it doesn’t have an annual fee then just keep open
- So your credit score can stay as high as possible
- But again credit scores don’t matter
3. Credit score
Truth is: We say we need credit to buy things ( but what are those things really )
- House: Manuel underwriting ( that simple )
- Car: if you need a car and you don’t have money ( but something used, cheap, and reliable
- Stuff: save up or don’t buy ( those are options, you don’t have to get whatever you want, just because you can swipe a card )
4. My advice
- If you don’t want to play the credit game anymore
- I would close it out and call it a day
- Focus on building real wealth
In conclusion:
- If you care about credit, it’ll hurt it
- If you don’t, it doesn’t matter
- Don’t close things out, if you are shopping for a mortgage at this current moment ( wait until that’s done and then close it out )
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Disclosure & Educational Disclaimer:
Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.
I closed about 15 accounts and you are about to see exactly what has happened to my credit score in just a moment. The main reason people ask If it’s okay to close accounts is because they get worried about their credit score.
I have also frozen my TransUnion, Equifax, and even my Experian accounts. No new lines of credit can be opened in my name, and no credit cards exist to report anything.
💲Patreon Exclusive💲
patreon.com/tommybryson
😎Call Me😎: bit.ly/30IBr0i
😎Second Channel😎: bit.ly/3c4sVPS
👨🏽💻Financial Freedom Course👨🏽💻$100 OFF CODE: LONGTERM
Link: longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom
1. The negative effect of closing a credit card
Utilization Ratio may change:
- This is the percentage of credit you are using, compared to how much you have been giving
For example, I give you a credit line of $500 and Chase gives you another of $500
- Right now you are using about $300 and have a utilization of 30% because you are only using 30%
- But you close me out, and now you only have chase with $500, your utilization goes up to 60% which not good
- You usually want this below 10% anyways
Reduced your credit Length
- Closing your oldest card can lower your length which is about 15% of your score
Your credit mix
- They want to know if you can handle different types of debt
Access to Capital
- Once you close that’s it, you can't borrow that money anymore
Truth is this: if you were using a product that you no longer cared about, like Tmobile for example ( and they tell you this)
- If you cancel yes you'll save $100 with another company
- But no more international roaming
- No more free Netflix
- Not more tmobile Tuesday
- Your response would be, who cares
2. What people tell you
- If it doesn’t have an annual fee then just keep open
- So your credit score can stay as high as possible
- But again credit scores don’t matter
3. Credit score
Truth is: We say we need credit to buy things ( but what are those things really )
- House: Manuel underwriting ( that simple )
- Car: if you need a car and you don’t have money ( but something used, cheap, and reliable
- Stuff: save up or don’t buy ( those are options, you don’t have to get whatever you want, just because you can swipe a card )
4. My advice
- If you don’t want to play the credit game anymore
- I would close it out and call it a day
- Focus on building real wealth
In conclusion:
- If you care about credit, it’ll hurt it
- If you don’t, it doesn’t matter
- Don’t close things out, if you are shopping for a mortgage at this current moment ( wait until that’s done and then close it out )
* PRO TIP*
INFORMATION IS EVERYTHING
💲Patreon Exclusive💲
patreon.com/tommybryson
👕Merch👕
teespring.com/stores/tommybryson
✅2 FREE AUDIOBOOKS✅
amzn.to/2Enayo8¬¬¬
🎁ACORN FREE $5🎁
Link: acorns.com/invite/38EYSU
⚡FREE KINDLE UNLIMITED⚡ (traditional reading)
Link: amzn.to/2VGbxt9
👨🏽💻DISCORD PRIVATE GROUP👨🏽💻
discord.gg/EcZEHpA
My Camera Gear: amazon.com/shop/tommybryson
✔ Help Us Reach 600,000 Subscribers: goo.gl/0wvm6w
😎All My Social Media😎
Link: https://linktr.ee/tommybryson ---
Disclosure & Educational Disclaimer:
Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.
