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Closing This Credit Card...? Good or bad?

Regular Contributor

Closing This Credit Card...? Good or bad?

Back in 2004 I opened a store card at JB Robinson (then known as LeRoy's).  I never ended up using this card and I never will.  Is it a good idea to dispose of this card?  Within the year I'll be applying for a mortgage, would this be a bad move at this time or actually improve my score getting rid of a non-major card?


Thanks!


EQ (11/16/2007): 573

Starting Score (1/1/2010): EQ: 712 -- TU: 726
Current Score: EQ: 748 (12/22/11) -- TU: 726 (1/7/10) -- TU04: 701 (1/27/10) -- EX: 747 (1/27/10) (LO)
Goal Score: EQ: 760


Take the FICO Fitness Challenge
Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: Closing This Credit Card...? Good or bad?

Check out the stickies at the top of this forum.  Look for "Helpful Threads".  Then select "Closing Credit Cards."  Hope that helps you decide.
Just puttin' syrup on something, don't make it pancakes.
Message 2 of 6
Valued Contributor

Re: Closing This Credit Card...? Good or bad?

IMO, this card is not hurting your score, so closing it won't improve your score. 

 

You do have age on this card, though, so even if you don't plan on ever using it, it may be helping you (just a bit) due to its age. 

 

I'd leave it alone, and allow it to die from "natural causes" (inactivity).

 

 

Message 3 of 6
Valued Contributor

Re: Closing This Credit Card...? Good or bad?

The card isn't hurting you. It helps your utilization percentage if you carry balances.

 

Be aware that any account you leave open needs to be monitored to make sure no annual fee or inactivity fee is generated. I had this happen once...missed an annual fee. Didn't know it until a 30-day late showed up and tanked my FICO. That's what got my attention. I paid the annual fee. I was lucky...the credit card company took the late payment off for me. I closed the account soon after.

 

Open inactive accounts can help you....but you need to monitor so that they don't hurt you. I'd leave it open and keep an eye on it.

Message 4 of 6
Regular Contributor

Re: Closing This Credit Card...? Good or bad?

Thanks for the responses.

 

To add some more information onto this subject, the card does not report properly (probably since I have never used it). 

 

Card Details:

 

Status as of: Jun 2007

Date Opened: Apr 2004

Last Activity: Not Reported

Largest Past Balance: $0

Credit Limit: Not Reported

 

As of this point... since it's no longer reporting, it's not helping my account history (I don't think).  It's also not a major credit card, just a store card.  So in total I have 3 store cards which may not be helping my report.

 


EQ (11/16/2007): 573

Starting Score (1/1/2010): EQ: 712 -- TU: 726
Current Score: EQ: 748 (12/22/11) -- TU: 726 (1/7/10) -- TU04: 701 (1/27/10) -- EX: 747 (1/27/10) (LO)
Goal Score: EQ: 760


Take the FICO Fitness Challenge
Message 5 of 6
Epic Contributor

Re: Closing This Credit Card...? Good or bad?

you my as well close it if your never going to use it, it's not doing anything for you
Message 6 of 6