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New Member
Posts: 3
Registered: ‎08-17-2009
0

Closing Store cards & one $0 balance card question...

Hey guys, I'm new to the site and I poked around for a while but didn't exactly find an answer to this question, sorry if it might be a similar repost!

 

I just got back from a bank (actually a credit union) for a refinance option for my car, as she pulled my credit report she told me that I could basically increase my score by "about 30 points" if I closed my:

Jared ($0 - used recently but paid off about 2 months ago, card is less than 6 months old)

Target ($0 - haven't used in a long time)

and one (of 2) HSBC cards that's under 2 years old ($0 - used recently but paid off about 3 months ago). 

 

She said that the store cards weigh down my score, mainly because they're "store" cards (?) and she recommended that the HSBC be closed since I have had it under 2 years and am not using it at all.

 

Apparently she was a Credit Counselor before she took her position at the bank.  And no, she wasn't technically "advising" me, she was just helping out with a few tips (just in case she's not "allowed" to advise in her position).

 

So, question is...is this valid advice?  Should I close these accounts?  She said if I closed them it would help, even the HSBC that's about 1 yr. 7 months old.  Is she right?

 

Thank you so much!!!

New Member
Posts: 3
Registered: ‎08-17-2009
0

Re: Closing Store cards & one $0 balance card question...

Actually I just called Target...it's not open and it's been "paid off" to show $0...so that's a bad account for me : (
Senior Contributor
Posts: 3,696
Registered: ‎01-10-2008
0

Re: Closing Store cards & one $0 balance card question...


goldiemcg wrote:

Hey guys, I'm new to the site and I poked around for a while but didn't exactly find an answer to this question, sorry if it might be a similar repost!

 

I just got back from a bank (actually a credit union) for a refinance option for my car, as she pulled my credit report she told me that I could basically increase my score by "about 30 points" if I closed my:

Jared ($0 - used recently but paid off about 2 months ago, card is less than 6 months old)

Target ($0 - haven't used in a long time)

and one (of 2) HSBC cards that's under 2 years old ($0 - used recently but paid off about 3 months ago). 

 

She said that  [1] the store cards weigh down my score, mainly because they're "store" cards (?) and she recommended that the HSBC be closed since I have had it under 2 years and am not using it at all.

 

Apparently she was a Credit Counselor before she took her position at the bank.  And no, she wasn't technically "advising" me, she was just helping out with a few tips (just in case she's not "allowed" to advise in her position).

 

So, question is...[2] is this valid advice?  [3] Should I close these accounts?  She said if I closed them it would help, even the HSBC that's about 1 yr. 7 months old.  Is she right?

 

Thank you so much!!!


1. incorrect

2. not generally speaking

3. probably not, see below

 

unless these cards are charging AF or other extraneous fees leave them alone, use at least once for a small purchase every couple of months and PIF.  as your accts age with good payment history and no new negative report info. your scores will continue to rise. 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
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New Member
Posts: 3
Registered: ‎08-17-2009
0

Re: Closing Store cards & one $0 balance card question...

Thanks Score, I didn't think that sounded right, seemed a little too good to be true.  I'm not getting hit with fees or anything on them at all so they aren't hurting me there.

 

I guess my wife will like the "use them every couple of months" comment, especially on the Jared one, lol.

 

Thanks again, I really appreciate it.

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