Called to close OB Card...

[Anonymous]

I needed this card at the beginning of my rebuilding, and my plan was to keep it for 2 years, but it's been driving me crazy - they're kind of squirrelly to deal with, and I've been turned down 3 times for a CLI since I've had the card (17 months) for "utilization", but no one can tell me what that means. (I've never charged more than 3/4 of CLI, and PIF each month pre statement.)

I used the card a lot at first, but not much for the past 6 months. - I have better cards now and I just wanted to be done with them.

so I called, told the CSR I wanted to close the account. She transfers me to a manager who can help me. He asks why I'm closing, I tell him I just don't need the card anymore, had better cards, etc. He offers me a CLI from $300 to $1000 and APR reduction from 15.99 to 11.99 with no pull...

No annual fee, 2% cash back on everything and a $1000 limit...Maybe it's not such a bad little card, Charlie Brown...

(well, at least I'll keep it until the 2 year mark.

and oh by the way - what's up with keeping a card for two years? I've searched the forums but can't seem to find a compelling reason for 24 months...)

[Anonymous]

In addition to the open date (age), creditors also "rate" the account.  This is where they show a history of payments up to 81 months.

Having an account not only with age, but rating, helps as a reference when LO or creditors review your other credit references.  Not necessarily will this help FICO, but FICO is only one aspect of good credit or getting credit.

[Anonymous]

thanks,

but why 24 months and not 12, or 36, or 48, etc?

[Anonymous]

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@Anonymous wrote:

thanks,

but why 24 months and not 12, or 36, or 48, etc?

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When someone looks at your reports I think if they see 24 of those green marks showing u paid on time every Month and then u chose to close your card instead of a few Months they feel more safe. Your reports shows your last 24 Months of on time payments. Some CC card companies continue to report after u close. I closed my Seamiles card almost a year ago and they still report but with 1st Premier they just stopped after 6 Months so now when u look at my reports u see those few times they reported. I'm not even a LO and I don't like how that looks.

[llecs]

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capman-bootman wrote:

.....and I've been turned down 3 times for a CLI since I've had the card (17 months) for "utilization", but no one can tell me what that means. (I've never charged more than 3/4 of CLI, and PIF each month pre statement.)

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Lenders don't like to see a high utilization (balance divided by CL). Ideally, you'd want less than 10% util reporting.

And OB and HSBC is odd too. They like to report your balance you had on the last biz day of the month. Even if you PIF monthly before the statement cuts, you could still show a high utilization.