Which factor could negatively impact a client’s credit score when restoring their credit?

Closing old credit accounts can negatively impact a client’s credit score due to its influence on the length of credit history and credit utilization ratio.

When a person closes an old credit account, that account is removed from the credit report, which can shorten the average age of their remaining accounts. A longer credit history generally demonstrates more reliable credit behavior, thus contributing positively to a credit score.

Additionally, closing a credit account can affect the credit utilization ratio, which is the amount of credit being used compared to the total credit available. If a significant amount of credit is closed, the total available credit decreases, potentially increasing the ratio of used credit to available credit. This heightened ratio can indicate increased credit risk to lenders, resulting in a negative impact on the credit score.

Maintaining old accounts, particularly those with good payment history, is often a strategy recommended for improving or restoring credit scores.