Does closing a credit card account, lowers your Credit Score?

The recent federal law has put a restriction on the interest rate charged on credit card holders. Thus, credit card companies are charging fess for some or the other thing to make up for their lost revenues.

Credit card holders are asked not interest to close their credit card account as it will affect their credit score. They are clueless as they do not know what to do with the credit cards they do not use. Card holders are credit bound to pay annual fees, which is around $99 and $60 fees unless the credit card’s usage is $2,400.

The fact is that the credit score is not all affected by closing a credit card account. It just one of the many strategies of credit card companies to higher revenues. FICO/ Credit score is a value which is beneficial for finance companies like banks, insurance companies, landlords and employers to check if we can pay back the money they lend us or invest on us. A higher score will help a person to get a loan with attractive interest rates.