Closing credit card account will reduce 'credit score'
15-12-2013 | IslamWeb
Question:
Assalamu Alaikum: I have been using a credit card for the past year, I have always paid it in full without interest. I did not know that entering the contract in itself is not permissible since it has Riba clauses but after researching it I came to realize that even signing the contract is forbidden. I feel very bad about this and would like to repent from it as soon as possible. I have decided to completely stop using the card (even cut the plastic card and dispose it) but is this sufficient for my repentance to be complete and correct or do I need to close my credit card account to exit the contract? In US they compute a number called "credit score" which assesses your "reputation" in paying back your debts (i.e. credit worthiness). The score is used by landlords and companies when you rent new home or when you apply for a new mobile phone line, internet service, gym membership,....etc (basically things that involve monthly billing) to determine your eligibility for the service and monthly fees amount. If I close my credit card account this will lower my credit score significantly and it will impact my eligibility and monthly fees and this is the only thing that worries me about closing the account. Jazakum Allah khayran!
Answer:
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and messenger.
First of all, may Allaah reward you for your enthusiasm in avoiding what is forbidden and seeking to learn matters of your religion.
What you mentioned about it being forbidden to enter a Riba contract even with the intention of repaying the debt before the time of the increase (i.e. adding interest) is true as we clarified in Fataawa 88473 and 98959.
Perhaps not knowing the ruling about it is an excuse for what you did, so you are not sinful now that you have stopped it.
However, tearing the card is of no use if the contract is ongoing. If you can stop the contract and close the account, then you have to do so.
However, if closing the account involves a drop in your credit score and the implications of that, then, apparently, it is permissible to keep the account provided this does not involve going into a forbidden transaction or paying Riba.
Allaah Knows best.