Yeah, it's definitely counterintuitive. Closing a card reduces your available credit, which bumps up your utilization ratio—one of the biggest factors in your score. Learned that the hard way when I closed an old store card I never used... score dropped like 20 points overnight. Seems like the system rewards you for juggling multiple accounts responsibly, but punishes you for simplifying your finances. Go figure.
"Seems like the system rewards you for juggling multiple accounts responsibly, but punishes you for simplifying your finances. Go figure."
Yeah, it's definitely a weird quirk of how credit scoring works. It's almost like they prefer you to have just enough debt to show you're managing it well, rather than none at all. I had a similar experience when I paid off a large chunk of debt—thought I'd see a big jump in my score, but nope... it barely budged.
Out of curiosity, has anyone tried asking their card issuer directly for lower rates after building a good payment history? I've heard mixed things—some say it's surprisingly effective if you've been consistent for a year or two, others say banks rarely budge unless you're threatening to transfer balances elsewhere. Wondering what everyone's experiences are on that front.
I've had mixed luck negotiating rates directly with card issuers. One time, after consistently paying on time for about 18 months, I called my bank and politely asked if they could lower my APR. Surprisingly, they knocked off a couple percentage points without much fuss. Another issuer, though... wouldn't budge at all, even when I mentioned transferring the balance elsewhere. Maybe it depends more on the issuer's policies or timing than anything else? Curious if certain banks are known to be more flexible about this stuff.
I've noticed the same thing—some banks seem way more open to it than others. A while back, after paying down a chunk of my balance, I called up my issuer thinking I'd have some leverage. The rep was nice enough, but basically said their hands were tied by internal policies. But then, randomly, another issuer proactively offered me a lower rate without me even asking. Makes me wonder if it's less about timing and more about how aggressively they're trying to keep customers at any given moment...
I've had similar experiences, but honestly, I think timing still plays a bigger role than you're giving it credit for. A few years back, I tried negotiating after paying off a big chunk—got nowhere. Then, randomly, months later when interest rates dropped overall, the same bank suddenly became super flexible. So yeah, customer retention matters, but banks also seem pretty sensitive to broader market conditions...
