Will closing my Hooters account make a difference?

[cupcake]

I currently have the following CCs, all unsecured and all without a balance, listed in order by age of the account:

QVC card with a $100 limit (oldest account, approximately 12 years old);
Macy's Visa with a $1,000 limit;
Macy's revolving store account with a $1,000 limit;
Cap1 with a $1,500 limit; and
Hooters with a $700 limit.

Cap1 sent me an offer via email for current customers to get a "rewards" CC; I applied thinking that I could close my Hooters account if I was approved. I was approved for the new Cap1 card with a $500 limit.

So, can I close my Hooters card at this point without a huge ding to my credit?

[CCsAreEvil]

In general, yes, closing any CC will lower your score but not by much (especially if the credit limit is lower). However, you are opening yet another CC which by just that action alone also lowers your credit. But in the grand scheme of things, you shouldn't worry about closing the card. I'm guessing you are closing because it has an annual fee? Makes sense.

So, again, closing any CC lowers your score because you are lowering your total/overall credit limit (availability).

There will be a difference in closing.. .let's say a CC with a $1k credit limit vs a CC with a $25k limit... closing the one with a $25k limit will probably greatly lower your FICO score.

[cupcake]

However, you are opening yet another CC which by just that action alone also lowers your credit.

How so? Because of the hard credit pull or for another reason?

I'm guessing you are closing because it has an annual fee? Makes sense.

Yes, exactly. And, I don't use it because it is a Hooters card. I can't quite get past that.

[Amy26]

Because you get dinged for opening new accounts. New trade lines generally as CCsAreEvil stated, will lower your score a bit.

The other factor to consider when closing a card is how long have you had the card? When you close a credit card, your payment history goes along with it. So, if you have a long positive payment history with a credit card and then you close it...it then does absolutely nothing for you anymore and can lower your score because 1) the history is gone and 2) there is another thing called "average age of accounts". The younger your average age of accounts number is the less benefit to your score you have. So, if you have had this hooters card a long time, it will impact you more if you close it than if you've only had it like 3 months or something.

[Logan]

Any hits in your credit score will be short term Don't worry about short term hits.