02-24-2009 11:34 AM - edited 02-24-2009 11:37 AM
Hi guys, first time poster. And the reason for my post is because I think I screwed up.
As of Febuary 1st, I had a 700 FICO credit score. So I am doing alright, but I think I made a decision that wasn't clearly thought through and I may have hurt my credit score.
I had a credit card with WAMU and it had a $2000 limit. When JP Morgan Chase bought WAMU I got a notice in the mail regarding it and all the changes they were making, which I completely disagreed with and I choose to "Opt out" of the credit card. I was given that option to "Opt out" when Chase bought WAMU, so I did.
BUT I still had some $1,300 on that WAMU card that I opt'ed out of and closed. I just read on one of the FAQ pages on the website saying that: "Active positive information can remain indefinitely (if an account is closed that has been positive, then it will typically remain on your report for 10 years after the date the account is closed)."
So did I totally screw myself over by Opting out of my card when I still had a balance on it? They only gave me a limited amount of time to Opt out, so I had to make that decision because I didn't like the new Terms they sent me. But, I now have a Closed account, with a $1300 debt (closed account = $0 credit line now), and I am wondering if thats going to be a "Negative" on my credit report/score and be on my report/score for 10 years!!!
I'm down to $600 on the card, and plan to have it completely paid off in two more payments of $300 each.
I know my credit to debt ratio went way up when I closed it because I lost my credit line (from $2000 to $0) and my total debt stayed the same. So I lost $2000 worth of credit.
Can anyone help me?? And possibly calm my nerves? Because right now I think I screwed up bad. And tarnished my 700 FICO score
02-24-2009 11:46 AM
02-24-2009 11:49 AM
Relax....and welcome to the forum!
If you're paying that balance off in a timely fashion, that's not going to hurt you. I've learned from another thread on this board that the good info stays on your report for another 10 years, like you said.
The only way it could hurt is if you have other balances that impact your total utilization. Your available credit is now lowered by 2000, but if you have no other balances, it won't impact your score due to increased utilization.
You had a 65% utilization on that one card as it was, so it wasn't helping you. Closing it was probably not a good idea, but paying it off as you intend should put your score back to where it was, if not higher.
Don't worry about day-to-day score fluctuations, they always happen. Just keep paying your bills on time, you'll be OK!
02-24-2009 11:53 AM - edited 02-24-2009 11:56 AM
I get a new FICO score March 1st, so I will find out then.
Thing is, these guys (JP Morgan Chase) forced bogus Terms on me when they bought WAMU. They game me the option to Opt out, so I opted out. I only had like 2 weeks to Opt out or I would have "Agreed" to the terms. And I definetely didn't agree.
I think if it does hurt me, that it is a definite flaw in the system and something that needs to be addressed. I didn't know Chase was going to buy WAMU, and I didn't know Chase was going to create bogus terms, they gave me a 2 week window to opt out, and I did.
Now I am wondering if I shot myself in the foot.
02-24-2009 12:00 PM
Short term, you'll see a drop. So what? It'll come back.
If you actually use the credit lenders provide to you, your score drops. Mine fluctuates anywhere from 715 - 775 at any given time. It's unimportant unless you're actively seeking new credit.
Don't place too much emphasis on scores. Place it on paying promptly and managing the debt you do have. The rest will take care of itself.
Please let us know how you make out, this month and the next.
02-24-2009 12:13 PM
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.