Opening or Closing Credit Cards Affect Scores for Mortgage Loans

Credit cards have an impact on credit scores

Closing a credit card account that has a balance can make it look like you maxed out the card. If you are trying to avoid using the card, it would be better to just cut it up or put it away. 

It's not a good idea to close a credit card that has an available balance. Your credit score for a mortgage is partially determined by the amount of available credit you have. 

Credit scores are also influenced by the types of credit you have, such as revolving credit accounts and installment loans, so closing an account may have a negative impact.

Keep your older credit cards open, because a longer credit history can be a positive factor. 

A mortgage loan application can also be influenced by opening new credit accounts. Before or during a loan application, adding a new account to your credit report can cause your credit scores to drop. Even multiple inquiries for new credit can reduce your score.