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Is it good to close 1 year old Retail Card?

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sdadi9604
New Member

Is it good to close 1 year old Retail Card?

Hello All,

 

1 year ago I have purchased some furnitures from Ashley furniture Store. While purchasing they said I can apply for GE Card so that I can pay the furniture amount in a year without Interest. So I have applied that without knowing the fact that I cannot use that card anywhere else besides Ashley store only. Smiley Sad

 

So I have paid all the amount in a year and thinking to close the account now as I am not gonna use the card anymore in future. 

 

I know if I close the account the Credit Utilization be increase but I am not that worried of that because I will be paying off all my debt in few months. Then Credit Util will be less than 5%.

 

So I would like to know is there will be a negative effect on my credit history or score now or in future? 

 

 

Thanks in Advance!

Message 1 of 15
14 REPLIES 14
Jbb2788
Regular Contributor

Re: Is it good to close 1 year old Retail Card?

I don't think it would negitively effect your credit but you might as well leave it open and let them be the ones to close it due to inactivity. That way when they do finally close the account down it will have a note that says paid 2 as agreed. This could potentially HELP your credit down the road.

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Message 2 of 15
parakleet
Valued Contributor

Re: Is it good to close 1 year old Retail Card?


@Jbb2788 wrote:

I don't think it would negitively effect your credit but you might as well leave it open and let them be the ones to close it due to inactivity. That way when they do finally close the account down it will have a note that says paid 2 as agreed. This could potentially HELP your credit down the road.


There are also those that believe that having a creditor closing your account could be seen as a negative. Even if closed by the customer, it will still have the "paid as agreed" note on there. You can leave it open if you want but I wouldn't do it for the suggested reason.


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Message 3 of 15
sdadi9604
New Member

Re: Is it good to close 1 year old Retail Card?

Hello there,

 

Thanks for Suggestion.

 

You are right, due to inactivity they will close the account but how long it will take to close the account? 

 

As I know it will take atleast 2-3 years. I am not sure but that's what I found in Internet.

Message 4 of 15
DiabolicallyRandom
Established Contributor

Re: Is it good to close 1 year old Retail Card?

I think I prefer to close them myself just out of pride.  I would feel rejected if they closed it. 

Message 5 of 15
sdadi9604
New Member

Re: Is it good to close 1 year old Retail Card?

One of my friend also suggested me the same to close it but I want to take the suggestions from the people in this forum so that I wouldn't regret later.

Message 6 of 15
Peter1142
Established Contributor

Re: Is it good to close 1 year old Retail Card?

If you leave it open, it may continue to report positive history.
Message 7 of 15
Necromancer
Regular Contributor

Re: Is it good to close 1 year old Retail Card?

I would close it, It will still report on your CR for 10 years. At that time the cc you have now will have aged,

Message 8 of 15
Kenny
Moderator Emeritus

Re: Is it good to close 1 year old Retail Card?

My question is are you sure that you would never buy any more furniture from Ashley's again? May be a good idea just to keep it open a year or more just in case you have to buy more furniture?
Message 9 of 15
BearsAndTurtlesRtheBest
Senior Contributor

Re: Is it good to close 1 year old Retail Card?

+1 DiabolicallyRandom

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Message 10 of 15
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