11-26-2012 11:44 AM
So I opened a Citi Secured Card in Oct of this year with a 2k CL
After some thought, i might not want to tie up 2k until the CD matures which won't be until April of 2014
If I decide to close the account, with a zero balance, what is the shortest amount of time I should leave it open to have a posative effect on my CR
11-26-2012 12:29 PM
I do agree with a year as being the best. However, I would say the minimum would be 6 months, apply for an unsecured card and be approved, THEN close out the secured!
Best of luck
11-26-2012 12:46 PM
well I already have a citi unsecured card (was secured, then became unsecured)...but my limit is 200.00 and has been since 2009...they wont raise it...so opened another secured card, but now thinking, I might want the 2000.00 cash and pay the card off...
11-26-2012 01:23 PM
Closing a CC (credit cards) does not lower your FICO scores in and of itself. When deciding to close a CC there are two important things to consider. In the short-term, closing a CC can have an adverse affect on your UTIL percentage calculations and this in itself can definitely lower your scores. In the long-term, a closed CC in good standing (nothing derogatory reporting) with a $0 balance will generally be deleted from your CRs (credit reports) after 10 years. Once this account is deleted, you lose the history and age and this might lower your scores.
For More information on how closing credit cards can impact your FICO score, please check out the following link: Closing Credit Cards.
11-26-2012 01:25 PM
I would still wait until you can get a bigger limit from a creditor who is good with CLI then you won't have to worry about secured cards any longer! But if you feel like you really need that money back, just keep paying your unsecured $200 and maybe apply for a store card to help with building!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.