12-14-2009 05:02 AM
12-14-2009 06:21 AM
True and False. Short term, closing a CC, in and of itself, will never decrease your score. However, if you close your very last open CC you could impact your mix of credit and that can drop your score. But if you have other open CCs aside from the one you are closing then there's no impact with your mix.
If you close a $0 balance CC and if you carry balances on your other CCs, then your util will increase and that can hurt your scores too. If your balances on your other CCs are under 9%, and you close a $0 balance CC, then there's really no point damage.
If you close a CC with a balance, then the balance and the CL will continue to factor into utilization for as long as there is a balance reporting. Once the CC reaches $0, then both the $0 balance and the CL are removed from scoring.
Closing a CC will never hurt your history. Your AAoA and length of history is preserved for as long as it reports. However, closed CCs continue to report for 10 years from the date of closure. Ten years out, it will be removed from your CR and that can impact your score.
IMO, PIF ASAP. Economics comes before your FICO score too.
12-14-2009 08:49 PM
12-15-2009 11:34 PM
12-17-2009 01:38 AM
DO NOT GET SHAFTED BY CITICARDS---OPT OUT! I did the exact same thing about 2 months ago and I was worried SICK that it was going to crash my score. I owe 14k to citi at 7.24%---I could in no way afford or ever want to pay 29.99% interest so I had to opt out. It hasn't affected my score at all because it is still carrying a balance--just like the orinigal post questions. Do not worry about any sort of impact on your score. IMO, opting out and closing the card could make you look like a better credit risk because that balance can only go one way in the future, down! So, please opt out before you run out of time and good luck getting the new house!
A solid answer if ever I've heard one. It doesn't get much better than this...
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.