cancel
Showing results for 
Search instead for 
Did you mean: 

Does closing a card always hurt your score?

tag
Jazzzy
Valued Contributor

Re: Does closing a card always hurt your score?


@phxphun wrote:
I have a very long perfect payment history with my Chase Mastercard...  never even one single late payment. I just got a notice of Change in Terms telling me they are raising my interest rate from 13% to 20%.  I want to reject the change, but of course this means the card will be closed.  Will this negatively impact my credit scores? 

 

I would keep the card and use it only every 3 to 4 months to keep it active. If you do that, it will likely help your FICO scores because it will help minimize your utilization percentage.

 

Chase may eventually close the card or lower the credit limit for nonuse, but...let them.

 

We have a couple of really old cards that say "closed by grantor," and we've never had anyone ask us about that.

 

We've also had rate increases by various credit cards recently, but since we don't carry a revolving balance, it doesn't hurt us. If I get mad and close a card, it would only hurt us instead of help us....and it won't get a point across to anyone at the credit card company. They really don't care.

Message 21 of 34
smallfry
Senior Contributor

Re: Does closing a card always hurt your score?


@creditwherecreditisdue wrote:

As the Cat did with the Queen, I attempt to "fade" in order to elude Chase's executioners. So far - So good!


Here's hoping you always find the Queen in a good mood.

Message 22 of 34
Anonymous
Not applicable

Re: Does closing a card always hurt your score?


@phxphun wrote:
I have a very long perfect payment history with my Chase Mastercard...  never even one single late payment. I just got a notice of Change in Terms telling me they are raising my interest rate from 13% to 20%.  I want to reject the change, but of course this means the card will be closed.  Will this negatively impact my credit scores? 

 

Before you act hasty, I would like to remind you that a lot of the interest rate increases  are a factor of the new Credit Cards Laws.

 

Although  Chase was one of the first to start implementig changes in advance to be in eventual compliance they will hardly be the last, and are not the only company to raise rates.

 

The new Laws will for the most part KILL under 10% interest for many users.

 

Since you do not regularly carry a balance, I would not worry, I would not close the acount but wait and see until this time next year what the state of the credit markets will be.

 

For all you know -Chase could be a great deal come next August.

Message 23 of 34
Anonymous
Not applicable

Re: Does closing a card always hurt your score?


@LynetteM wrote:

 If I get mad and close a card, it would only hurt us


  Not necessarily.  Has never hurt me and LOL I have more closed cards showing on my reports than open.  A lot depends though on your utilization, keeping older accts for age, and a host of other factors. 
Message 24 of 34
Anonymous
Not applicable

Re: Does closing a card always hurt your score?


@Anonymous wrote:

Before you act hasty, I would like to remind you that a lot of the interest rate increases  are a factor of the new Credit Cards Laws...  to be in eventual compliance

The new Laws will for the most part KILL under 10% interest for many users.

 


  To be in compliance of what?  The new laws comply the banks to raise rates on good customers?  What is going on is solely their attempt to maintain their greed and profit margins by getting higher rates in place before they will have some restraints next yr.   
Message 25 of 34
Anonymous
Not applicable

Re: Does closing a card always hurt your score?


@Anonymous wrote:
  To be in compliance of what?  The new laws comply the banks to raise rates on good customers?  What is going on is solely their attempt to maintain their greed and profit margins by getting higher rates in place before they will have some restraints next yr.   

No for profit business stays in operation by continually losing money.


I think you are well aware of the changes taking place next year in the Credit Laws, and you are completely aware of how that is changing how companies do business.

 

Actions have consequences and the new credit laws have several unexpected ones.

 

http://www.examiner.com/x-7812-DC-SCOTUS-Examiner~y2009m8d21-New-Credit-Card-Law-Eliminates-Cash-Back-and-Rewards-Programs-Harms-Responsible-People

 

http://www.latimes.com/business/la-fi-creditcard20-2009aug20,0,6773212.story

 

 

 

 

Message 26 of 34
creditwherecreditisdue
Senior Contributor

Re: Does closing a card always hurt your score?


@Anonymous wrote:

@Anonymous wrote:
  To be in compliance of what?  The new laws comply the banks to raise rates on good customers?  What is going on is solely their attempt to maintain their greed and profit margins by getting higher rates in place before they will have some restraints next yr.   

No for profit business stays in operation by continually losing money.


I think you are well aware of the changes taking place next year in the Credit Laws, and you are completely aware of how that is changing how companies do business.

 

Actions have consequences and the new credit laws have several unexpected ones.

 

http://www.examiner.com/x-7812-DC-SCOTUS-Examiner~y2009m8d21-New-Credit-Card-Law-Eliminates-Cash-Back-and-Rewards-Programs-Harms-Responsible-People

 

http://www.latimes.com/business/la-fi-creditcard20-2009aug20,0,6773212.story


"SinceApril, the average variable rate on new cards has risen steadily to 11.22% as of this week from 10.69%, according to Bankrate.com, a consumer finance website."

Hardly the end of the world. For the umpteenth time, the sky is not falling.

 

The only change I have been subjected to since this law was enacted has been that BofA changed my APR on my AMEX card from 9.99%F to 9.99%V. Big deal.

Message 27 of 34
haulingthescoreup
Moderator Emerita

Re: Does closing a card always hurt your score?


creditwherecreditisdue wrote:

...Hardly the end of the world. For the umpteenth time, the sky is not falling.

 

The only change I have been subjected to since this law was enacted has been that BofA changed my APR on my AMEX card from 9.99%F to 9.99%V. Big deal.



Just because the sky is not falling on you doesn't mean that it hasn't fallen on many, many others. And we have read their posts, so this is certainly common knowledge.

Yet another reminder to be friendly, supportive, and respectful.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 28 of 34
creditwherecreditisdue
Senior Contributor

Re: Does closing a card always hurt your score?


@haulingthescoreup wrote:

@creditwherecreditisdue wrote:

...Hardly the end of the world. For the umpteenth time, the sky is not falling.

 

 

The only change I have been subjected to since this law was enacted has been that BofA changed my APR on my AMEX card from 9.99%F to 9.99%V. Big deal.



Just because the sky is not falling on you doesn't mean that it hasn't fallen on many, many others. And we have read their posts, so this is certainly common knowledge.

"SinceApril, the average variable rate on new cards has risen steadily to 11.22% as of this week from 10.69%, according to Bankrate.com, a consumer finance website."

You left out the statistic that reflects that the sky is not falling. This comes from the second of the two cited articles. I am kind of surprised that the change is that small, but if bankrate.com says so it must be true.

Message 29 of 34
Anonymous
Not applicable

Re: Does closing a card always hurt your score?


@creditwherecreditisdue wrote:

@haulingthescoreup wrote:

@creditwherecreditisdue wrote:

...Hardly the end of the world. For the umpteenth time, the sky is not falling.

 

 

The only change I have been subjected to since this law was enacted has been that BofA changed my APR on my AMEX card from 9.99%F to 9.99%V. Big deal.



Just because the sky is not falling on you doesn't mean that it hasn't fallen on many, many others. And we have read their posts, so this is certainly common knowledge.

"SinceApril, the average variable rate on new cards has risen steadily to 11.22% as of this week from 10.69%, according to Bankrate.com, a consumer finance website."

You left out the statistic that reflects that the sky is not falling. This comes from the second of the two cited articles. I am kind of surprised that the change is that small, but if bankrate.com says so it must be true.


 

The problem with averages is they do not take into account the extremes. A diabetic can steadily show an average blood sugar of 120 that hides the near stroke inducing 300s he hit on several occasions- but the averages look **bleep** good.

 

By the same token, just a lowly rise of that amount this early in the game does show that changes are afoot.

Message Edited by usmc58555 on 08-23-2009 05:05 PM
Message 30 of 34
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.