Dear Liz: When our daughter turned 18, I was able to get her a credit card with a $750 limit by opening the account myself, with her named as an authorized user. I did not plan to use the credit card myself and did not. We were then able to order her a credit card with her name on it. She used the card for five years, paying the balance each month. When she graduated from college, the same credit card company offered her a rewards card with a $3,000 limit in her name only, leaving me off the account. This was just as I planned it. Now she wants to close the account with the $750 limit that was opened five years ago. Will this hurt anyone’s credit scores? Neither one of us plans to ever use this account again.
Answer: Closing accounts can’t help your credit scores and may hurt them. But if both of you have good scores (FICOs of 740 or above) and other open credit accounts, then canceling this account shouldn’t have disastrous effects on your scores.