Credit Score Effects

• Credit scores will often drop when a card is canceled. This is not always the case, if the user has many accounts or the account was previously late then the score might rise. The reduction for a single card in a single account is usually not high -- in the best circumstances in might only be around 10 points. But the amount is based solely on the other types of credit that the borrower has, and so varies from card user to card user.
  
  

Credit Types

• The credit card counts as revolving credit for the FICO credit score. While the exact FICO score is heavily protected, the percentages are known, and the amount of credit accounts and how well they are managed can count as 30 percent of the total score. However, if the borrower cancels a last credit card and has no more revolving credit, then this credit category will not longer apply to the score. This can cause credit to stagnate and might initiate a slow drop over time.
  
  

Age

• The age of the credit card account can also be an important player when it comes to deciding how much the score will drop. A long-term card that has been regularly paid off has a positive effect on credit and canceling it will cause a larger drop in credit than a card that the user has only has briefly. When canceling cards, users should try to cancel those with the newest accounts and worst history whenever possible.
  
  

Positive Effects

• The positive effects of a credit card account are indefinite. Negative effects on a credit report, however, have a time limit and disappear after no more than seven years. This means that while canceling a card might have a short-term negative effect, if that card had been creating positive credit effects eventually only those positive ratings will be left.