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All,
Here is the alert that I got over the weekend from myFICO. I read some posts in here that closing an account would not hurt scores, AAoA, etc. if the account is closed, because it stays on your report for about 10 years. I closed the account due to it having a Monthly and Annual Fee, and I was fairly confident after researching everything that it would not drop my score.
Is there anything I can do? I did notice that it doesn't say closed account, but paid loan. This was not a loan. Should I dispute?
Any guidance would be greatly appreciated.
603393/18/2017 ExperianAn account listed on your credit report has been updated
Did your utilization go up?
@steele70 wrote:All,
Here is the alert that I got over the weekend from myFICO. I read some posts in here that closing an account would not hurt scores, AAoA, etc. if the account is closed, because it stays on your report for about 10 years. I closed the account due to it having a Monthly and Annual Fee, and I was fairly confident after researching everything that it would not drop my score.
Is there anything I can do? I did notice that it doesn't say closed account, but paid loan. This was not a loan. Should I dispute?
Any guidance would be greatly appreciated.
603393/18/2017 ExperianAn account listed on your credit report has been updated
FICO® SCORE CHANGEView score history642603DETAILSCOMPANY NAMEFIRST PREMIER BANKWhat does this mean?Dispute this change
- AMOUNT
- $0.00
- STATUS
- Paid Loan
There isn't really anything to dispute. The language of paid loan is the common terminology for an account that is closed with no balance due. Assuming your utlization did not shoot up my guess is that your scores will recover. The double edged sword of Myfico membership is these alerts that happen all the time. Building your fico scores is a long term proposition so we have to fight the temptation to react or panic when these changes happen. Closeing this card was the right thing to do in the long term, whenever I close an account I take a hit short term, heck I have taken hits when I do all of the right things but as long as I am trending up month to month or quarter to quarter I feel like I am in good shape. There is a fico score section where those folks might be able to help a little more, they seem to know more of the secret magic than most.
As said, you're OK. Its UTL that is droping your score, not AAoA. Once you drop % of UTL and your scores will rebound.
What I used to do was knowing I would close a card, I would add one before I closed one. That helped keep drops to a minimum for UTL.
If the plan is to close but not replace the card, you're seeing the result if UTL is high.
The scores change quite a bit sometimes, with some very wild swings. You just have to find your rhythm