Is that what determines if your credit rating goes down when you close an account? The fact that it was done by the holder’s request? If you do that, should you only do it if you have available credit on other accounts so that it doesn’t look like you are maxed out on all your open accounts? My daughter is in the process of paying off her debt and is debating about closing the accounts as she pays them off. My advise to her has been to not close them because her credit is ok, but not excellent. I didn’t want her score to go down because it appears that all her available is credit is maxed.
There will be a negative to her score if the credit report reads that the account was closed by the company. It isn’t a negative to the credit rating if it reads closed at holder’s request. I had to learn this lesson the hard way:) When I was younger and trying to navigate my way in the adult world, I was always taught to determine debt ratio (available credit to debt)before I decided to close out accounts. So there were times that I kept unused cc opened and times I closed them. When I applied for my first mortgage, one of the first things the bank looked at was open credit lines. They viewed too many open credit lines as a negative because of the potential of my accessing that debt. So the bank helped me determine which ones to close (lower possible debt) and which ones to keep open (helping credit score by showing accounts in good standing for a longer period of time).
I guess all of it depends on what your daughter’s short-term and long-term financial goals are and the best way for her to get there. I hope this helps:)