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Does cancelling Amex hurt credit?

Closing a credit card won't immediately affect your length of credit history (worth 15% of your FICO Score) by lowering your average credit age. Even after you close a positive account, it may remain on your credit for up to 10 years. But after that, it could decrease your score.



Cancelling an American Express card can impact your credit score, primarily through two factors: your credit utilization ratio and the average age of your accounts. When you close a card, your total available credit limit decreases. If you carry balances on other cards, your utilization percentage will go up, which can cause a dip in your score. Furthermore, if the Amex you are closing is one of your oldest accounts, it will eventually stop contributing to the "length of credit history" portion of your score (though closed accounts in good standing stay on your report for 10 years). If your Amex has a high annual fee that you no longer want to pay, a better alternative is often a "downgrade" to a no-fee version of the same card family (like moving from a Gold card to a Blue Cash Everyday). This allows you to keep the account open, preserve your credit limit, and maintain your long-term history without the yearly cost.

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In most situations, it's better to keep unused credit card accounts open, as closing credit accounts can have a negative impact on your credit score.

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If the credit card account you plan to close is one of your oldest accounts, it will reduce the average age of your remaining accounts when it is removed from your credit report. This would potentially lower your credit score, though usually not dramatically.

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It's possible that you could see your credit scores drop after fulfilling your payment obligations on a loan or credit card debt. Paying off debt might lower your credit scores if removing the debt affects certain factors like your credit mix, the length of your credit history or your credit utilization ratio.

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