cancel
Showing results for 
Search instead for 
Did you mean: 

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

Contributor

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. 

2 REPLIES
Senior Contributor

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.  

Highlighted
Valued Contributor

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 

 

Click ME

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
Lower Utility
Earn Cash Back

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$7,400
Citi DC $10,000
Citizens Mastercard$7,000