Canceling AARP/Chase Visa Card

[Anonymous]

About 18 months ago, I opened a 0% interest card with Chase through AARP to purchase a medical device from an online source. Now that the interest rate skyrocketed to 14% I have have paid off the remaining balance. When last check about 5 months ago my Equifax score was 780. In addition to the AARP/Chase card, I just paid off my Ford car loan in July. I have a Best Buy card with a 3 year 0% interest balance of about $900 (new TV)on which I am paying considerably more than the minimum required monthly payment and a USAA Federal Savings Bank MasterCard (which I have had since USAA opened banking services) with a balance of about $6500 which I hope to add the money saved from paying Ford toward paying down this balance. Aside from my home loan (5.5% fixed), that's it in terms of debt. What I would like to know is what, if any, effect closing the AARP/Chase account would have on my FICO score? Also, if I initiate talks with USAA about lowering my MasterCard interest rate, would that show up on my credit report and have any effect on my FICO score? Thank you for whatever advice you can provide. Gerry

[fused]

---

Dr_Zoidberg54 wrote:
About 18 months ago, I opened a 0% interest card with Chase through AARP to purchase a medical device from an online source. Now that the interest rate skyrocketed to 14% I have have paid off the remaining balance. When last check about 5 months ago my Equifax score was 780. In addition to the AARP/Chase card, I just paid off my Ford car loan in July. I have a Best Buy card with a 3 year 0% interest balance of about $900 (new TV)on which I am paying considerably more than the minimum required monthly payment and a USAA Federal Savings Bank MasterCard (which I have had since USAA opened banking services) with a balance of about $6500 which I hope to add the money saved from paying Ford toward paying down this balance. Aside from my home loan (5.5% fixed), that's it in terms of debt. What I would like to know is what, if any, effect closing the AARP/Chase account would have on my FICO score? Also, if I initiate talks with USAA about lowering my MasterCard interest rate, would that show up on my credit report and have any effect on my FICO score? Thank you for whatever advice you can provide. Gerry

---

Changes in CC APRs are not reported to the bureaus, so their is no effect to your FICO scores. As for closing CCs read the link closing credit cards in my sig line.

[Anonymous]

Fused111 Thanks for the quick reply. Please excuse my ignorance as I don't quite understand all the terminology and methods regarding whether to keep or cancel a CC. As I understand it, how long you've had the CC, if you have a zero balance and the CL are all factors plus how long you've had and the CL on other credit cards are also factors. It all sounds very "Catch 22". In terms of active credit card accounts I have USAA MasterCard opened in 8/85 with a CL of $21K ($7K balance owed) Best Buy opened in 9/96 with a CL of $4K ($850 balanced owed) GE Care Credit opened in 1/2004 with a CL of $5,500 ($450 balanced owed) Home Depot opened in 4/2006 with a CL of $15K (Zero balance) AARP/Chase Visa opened in 2/2006 with a CL of $17K (Zero Balance) I also have several inactive CC and credit accounts all zero balanced going back as far as 1979. As I mentioned my Equifax FICO score as of 1/2007 was 780. The reason it wasn't higher was the balance owed on my USAA MasterCard, I co-signed so my disabled adult daughter could get a CompUSA credit card (to develop some credit history) and the recently opened AARP/Chase Card. If I understand your explanation on closing CC accounts, despite the fact I am not going to use it again, in the long run it would be better just to leave it alone. Again, please excuse me if I appear dense in comprehending some of this; I very much appreciate your understanding and assistance. Understanding my computer and its operation seems easier than figuring out this FICO business. Gerry

[fused]

---

Dr_Zoidberg54 wrote:
Fused111 Thanks for the quick reply. Please excuse my ignorance as I don't quite understand all the terminology and methods regarding whether to keep or cancel a CC. As I understand it, how long you've had the CC, if you have a zero balance and the CL are all factors plus how long you've had and the CL on other credit cards are also factors. It all sounds very "Catch 22". In terms of active credit card accounts I have USAA MasterCard opened in 8/85 with a CL of $21K ($7K balance owed) Best Buy opened in 9/96 with a CL of $4K ($850 balanced owed) GE Care Credit opened in 1/2004 with a CL of $5,500 ($450 balanced owed) Home Depot opened in 4/2006 with a CL of $15K (Zero balance) AARP/Chase Visa opened in 2/2006 with a CL of $17K (Zero Balance) I also have several inactive CC and credit accounts all zero balanced going back as far as 1979. As I mentioned my Equifax FICO score as of 1/2007 was 780. The reason it wasn't higher was the balance owed on my USAA MasterCard, I co-signed so my disabled adult daughter could get a CompUSA credit card (to develop some credit history) and the recently opened AARP/Chase Card. If I understand your explanation on closing CC accounts, despite the fact I am not going to use it again, in the long run it would be better just to leave it alone. Again, please excuse me if I appear dense in comprehending some of this; I very much appreciate your understanding and assistance. Understanding my computer and its operation seems easier than figuring out this FICO business. Gerry

---

In your case I wouldn't close anything. Yes, in the long-term it would be better if the accounts remain open. In the short-term util% changes are the major consideration. I created this thread so folks understand the consequences of closing CCs. I might have to expand on this subject to include when it's a good or bad idea to close CCs. By the way 780 is an A++++ score, way to go!

[Anonymous]

I appreciate the advice. It is still rather confusing but the cynical part of me says that's the way the "Credit Consortium" prefers it. Just to let you know, one of the things about which I made sure, was that the AARP/Chase card had no annual or other fees but as I think about it I didn't take out my magnifying glass to check all the fine print regarding zero balances. My USAA card has never charged any additional fees beyond interest. As for the AARP/Chase card, into the fireproof safe never to see the light of day again unless they make me another zero percent interest deal again, which I highly doubt. I have always regarded credit in the same manner that I did when handling a live grenade in the Army; with extreme caution and some trepidation. Thanks again for the advice

[Anonymous]

Just leave the card open. Use it ocassionally for a small purchase and PIF.  That way the utilization,or available credit will still show in your FICO scores.  But with those scores I don't think you have anything to worry about no matter what you choose.

[fused]

---

Brammy wrote:

Just leave the card open. Use it ocassionally for a small purchase and PIF.  That way the utilization,or available credit will still show in your FICO scores.  But with those scores I don't think you have anything to worry about no matter what you choose.

---

I have to agree!

[haulingthescoreup]

---

@Anonymous wrote:
Also, if I initiate talks with USAA about lowering my MasterCard interest rate, would that show up on my credit report and have any effect on my FICO score? Thank you for whatever advice you can provide. Gerry

---

I got irked that my mostly-unemployed college senior had half the interest rate on her USAA MC that I did, and I called to ask for a reduced rate. It took two calls, but they did (both cards), and there are no hard inquiries on my account. They use Equifax, as best as I can tell.

Their phone people are pretty knowledgeable, and I bet you could ask them during the call whether they would do a hard inq or not. They keep asking around on their end until they get the right answers--they don't seem to make wild guesses. And yay for talking to CSR's who aren't in Mumbai!