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New Member
Cpbball3
Posts: 6
Registered: ‎10-18-2012

Closing a High Limit Credit Card

[ Edited ]
 
Valued Member
hilltro
Posts: 27
Registered: ‎01-13-2009

Re: Closing a High Limit Credit Card

I would say keep it for you AAOA. Dont be afraid to keep a little balance on it. Even 1 or 2% on it. Pay it off after your statement comes out to avoid big interest charges.

 

 

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New Member
Cpbball3
Posts: 6
Registered: ‎10-18-2012

Re: Closing a High Limit Credit Card

I am just very confused why my dico score can decrease over a 3 month period when I paid all bills on time including a mortgage and car loan and I have a 0% credot card UTIL ratio. Grrrrr!!

Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012

Re: Closing a High Limit Credit Card

[ Edited ]

Cpbball3 wrote:

I am just very confused why my dico score can decrease over a 3 month period when I paid all bills on time including a mortgage and car loan and I have a 0% credot card UTIL ratio. Grrrrr!!



0% utilzation is weighing your score down. Let a 1-9% balance report on your highest limit cc and your score will jump

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Regular Contributor
cmthomas06
Posts: 174
Registered: ‎06-21-2012

Re: Closing a High Limit Credit Card

Personally, I would suggest to NOT close that card! Keep your AAoA and that card will help build your others (if you need to, that is :smileytongue: ). Try letting acouple balances report each month; nothing major, but just to show activity. 

Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Established Contributor
KIPPIE12
Posts: 619
Registered: ‎05-09-2009

Re: Closing a High Limit Credit Card


Cpbball3 wrote:

I am just very confused why my dico score can decrease over a 3 month period when I paid all bills on time including a mortgage and car loan and I have a 0% credot card UTIL ratio. Grrrrr!!


Closing this card WILL NOT affect AAoA.  It will continue to factor into scoring for 10 years after the closing reported date.  I wouldn't close it, especially with that line of credit.  Simply let  a small balance report on the next billing statement.  Your accounts aren't showing any activity being reported at zero.  I found this out  a few years back, when mine were all reporting zero.  I started rotating cards out, and let one report a very small balance each month, maybe 20$ or so, then payoff before next cycle closes.FICO likes to see some sort of usage to score accordingly.  You should rebound some of those points with a little usage.  In this economy, not many banks are extending those lines of credit anymore, without going through an extensive financial analysis.

Current Score: EQ: 781 TU: 798 EX: 802 (Fico) 8/13
Goal Scores: 760 Across all 3-Finally


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Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: Closing a High Limit Credit Card

[ Edited ]

There is really no reason to close. You will still get approved for most things with that score. If you have any problems you can always recon. You will get generous credit limits on other cards by having that card on your report. Keep in mind, if you close it. It will still report positively for 10 years. The only problem I see with having that high of a limit, is for it to show even 1% utilization you have to charge at least $500. Which if you don't have spending that high. You will have problem charging that much every month.

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Valued Contributor
thom02099
Posts: 1,286
Registered: ‎08-30-2011

Re: Closing a High Limit Credit Card

+1 what the others have said.

 

Bottom line is, unless you're looking for new credit (new loan specifically), a change in your score from 723 to 706 just isn't a big deal.  Scores fluctuate.  Follow the advice given above and you'll see the scores increase.  A $50K CL is nothing to take lightly. 

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Regular Contributor
cmthomas06
Posts: 174
Registered: ‎06-21-2012

Re: Closing a High Limit Credit Card


KIPPIE12 wrote:

Cpbball3 wrote:

I am just very confused why my dico score can decrease over a 3 month period when I paid all bills on time including a mortgage and car loan and I have a 0% credot card UTIL ratio. Grrrrr!!


Closing this card WILL NOT affect AAoA.  It will continue to factor into scoring for 10 years after the closing reported date.  I wouldn't close it, especially with that line of credit.  Simply let  a small balance report on the next billing statement.  Your accounts aren't showing any activity being reported at zero.  I found this out  a few years back, when mine were all reporting zero.  I started rotating cards out, and let one report a very small balance each month, maybe 20$ or so, then payoff before next cycle closes.FICO likes to see some sort of usage to score accordingly.  You should rebound some of those points with a little usage.  In this economy, not many banks are extending those lines of credit anymore, without going through an extensive financial analysis.


By keeping AAoA I meant to keep the credit he has now (ie. not adding any more cards). Sorry, I realize I wasnt very clear as my last post was rushed. 

Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Regular Contributor
ukimafija
Posts: 127
Registered: ‎08-13-2012

Re: Closing a High Limit Credit Card

You DO NOT close the card for nothing. Just listen to OptimasPrime  , you have to have a balance, If it is a 0, that doesn't build your credit. They want to see you can borrow and then pay it back. Keep it between 1-9%  util. And your score will grow, that is how I got mine to 750+ and got a bunch of new CC before my score dropped. Now ,leave them alone and it will raise again....

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