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Contributor
BearOSO
Posts: 96
Registered: ‎10-03-2012

Does it look bad to close a secured CC with high CL/Deposit

I currently have a USAA Sec CC with a $5000 limit. It will mature this month and I am going to close it and receive my moneys. I have been approved for the unsecured CC with a CL of 5500. Aside from utilization, how will removing the Secured CC affect my report? Will the sudden drop of $5000 or the closing of a two year account with perfect payment history, affect my score/report negatively? If so, how bad?

 

I am officially off to the garden for a year as I think I have acheived what I needed to and will pursue my "wants" in 2014. 


Starting Score: 656 12/2012
Current Score: FICO (USAA pulled) EXP:678 | myFICO EQ:676 | myFICO TU:685 | App free since 2/1/2013

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Does it look bad to close a secured CC with high CL/Deposit


BearOSO wrote:

I currently have a USAA Sec CC with a $5000 limit. It will mature this month and I am going to close it and receive my moneys. I have been approved for the unsecured CC with a CL of 5500. Aside from utilization, how will removing the Secured CC affect my report? Will the sudden drop of $5000 or the closing of a two year account with perfect payment history, affect my score/report negatively? If so, how bad?

 

I am officially off to the garden for a year as I think I have acheived what I needed to and will pursue my "wants" in 2014. 


There is nothing negative about closing an account other than utilization, unless they are your only CCs.   I would not close unless I had at least 3 open CC left.  

Valued Contributor
creditnocash
Posts: 2,164
Registered: ‎07-23-2012

Re: Does it look bad to close a secured CC with high CL/Deposit

besides utilization, it wont hurt your reports. 

any account closed in good standing still reports good for 10 years. 

 

please refer to this link 

 

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