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Just wondering becuase I am considering closing my Blue b/c the CLD me to $500 (from 1K) and I really don't need the account. I still have my Green and it lets me charge just like normal. I'd never carry a balance w/Amex anyway, so I don't see the need for having the 2 cards. I just don't want any cards with a limit under 1K since all of my cards are now at or above that. Came out of the blue, too (no pun intended). I checked my reports, nothing new bad in the last 2.5 years and no new accounts since I got my Green in May. I'm just a little ticked about it. ....And the letter said too many inquiries and my balances are too high...and I've had no inquiries since May...and my Credit score is too low. Now 662 according to EX. I was approved with a 622. BTW, my Blue balance is $0. Overall Util 14%. Those are lame reasons. Seems like their system is arbitrary.
So, I guess the meat and bones of the question is should I wait until a year and then close it? I am wondering because I know accounts under a year hurt your score. Does this also count for closed accounts? How does that work?
heirophant wrote:Just wondering becuase I am considering closing my Blue b/c the CLD me to $500 (from 1K) and I really don't need the account. I still have my Green and it lets me charge just like normal. I'd never carry a balance w/Amex anyway, so I don't see the need for having the 2 cards. I just don't want any cards with a limit under 1K since all of my cards are now at or above that. Came out of the blue, too (no pun intended). I checked my reports, nothing new bad in the last 2.5 years and no new accounts since I got my Green in May. I'm just a little ticked about it. ....And the letter said too many inquiries and my balances are too high...and I've had no inquiries since May...and my Credit score is too low. Now 662 according to EX. I was approved with a 622. BTW, my Blue balance is $0. Overall Util 14%. Those are lame reasons. Seems like their system is arbitrary.
So, I guess the meat and bones of the question is should I wait until a year and then close it? I am wondering because I know accounts under a year hurt your score. Does this also count for closed accounts? How does that work?
When it comes to closing cards, you should be most concerned with changes in your util. Closing this card will not change your credit history length or average-age of accounts. A CC card less than one year old will have a negative impact until it hits it's 1 year anniversary, it doesn't matter if the card is open or closed in your situation. Your credit mix shouldn't take a hit either.
@fused wrote:
@heirophant wrote:Just wondering becuase I am considering closing my Blue b/c the CLD me to $500 (from 1K) and I really don't need the account. I still have my Green and it lets me charge just like normal. I'd never carry a balance w/Amex anyway, so I don't see the need for having the 2 cards. I just don't want any cards with a limit under 1K since all of my cards are now at or above that. Came out of the blue, too (no pun intended). I checked my reports, nothing new bad in the last 2.5 years and no new accounts since I got my Green in May. I'm just a little ticked about it. ....And the letter said too many inquiries and my balances are too high...and I've had no inquiries since May...and my Credit score is too low. Now 662 according to EX. I was approved with a 622. BTW, my Blue balance is $0. Overall Util 14%. Those are lame reasons. Seems like their system is arbitrary.
So, I guess the meat and bones of the question is should I wait until a year and then close it? I am wondering because I know accounts under a year hurt your score. Does this also count for closed accounts? How does that work?
When it comes to closing cards, you should be most concerned with changes in your util. Closing this card will not change your credit history length or average-age of accounts. A CC card less than one year old will have a negative impact until it hits it's 1 year anniversary, it doesn't matter if the card is open or closed in your situation. Your credit mix shouldn't take a hit either.
So, I guess what I am trying to ask is, does that less than 1 year ding then last for 10 years on my credit report because the account was less than a year old when closed. If I can escape the ding for 10 years by keeping it open for a couple of more months, I'll do it.
The one year "ding" will last one year, open or closed. I'm not sure why you would close the account though. Why not just leave it alone. It isn't hurting anything other than your ego. I would wait 'til the dust settles with AMEX.
@jmbfl wrote:The one year "ding" will last one year, open or closed. I'm not sure why you would close the account though. Why not just leave it alone. It isn't hurting anything other than your ego. I would wait 'til the dust settles with AMEX.
That is true. My ego is a little bruised by it. The only thing I can think is that they have changed their risk model and my profile no longer fits the new model, therefore, they CLD'd me. Yeah, I should probably wait and stew over it a little more before I make a decision to close it. That's what makes these boards special. You can mull over important decisions with support from Others.
Now that Amex has been bailed out, there is no telling what changes will take place. We can guess, but we really don't know. It's certainly possible Amex will start restoring credit lines now that they have a blank check and access to unlimited money.
If anything, keep it open with minimal charges and you will cost them more money in account maintenance than they will make off your purchases - that is the real way to get even with a CCC.
The power of the sock drawer (with occassional cheap trips out to keep them guessing)
@fused wrote:Now that Amex has been bailed out, there is no telling what changes will take place. We can guess, but we really don't know. It's certainly possible Amex will start restoring credit lines now that they have a blank check and access to unlimited money.
I think this bailout is somehow related to the ongoing mess with the old accounts being reaged and posted to the CBR's. When I talked to the agent she said something about "recalculating reserves" having contributed to this error.