Credit Cards

[kawgirl23]

So, I just closed my Macys account that I've had since 2006 because they NEVER gave me any CLI so I'm wondering will it drop my score?  I had the account since 2006 and was late maybe once if any and never over the limit.  I started at $100 and they barely gave me $200 since opened.  Was this a mistake?

[shyboy]

if it wasn't costing you anything, i would have left it open. Once it's reported as close, that account will not be part of your ult. but will be on your report on a few years.

[kawgirl23]

I figured with $200 it really wasnt helping it either.  So I guess I was wrong.  Well, maybe I'll open it back up in a few months.

[debtisgood]

Did you ever call them and ask them for guideline increases? They are usually grant them if you have clean payment history with them. Were you 30 days late with them ever or under 30 days? There is a big difference credit report wise.

If you have another store card (no visa, mc, amex, discover logo on it) then you should be fine score wise, but in general there is no point to closing cards without annual fees. 

[kawgirl23]

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debtisgood wrote:

Did you ever call them and ask them for guideline increases? They are usually grant them if you have clean payment history with them. Were you 30 days late with them ever or under 30 days? There is a big difference credit report wise.

If you have another store card (no visa, mc, amex, discover logo on it) then you should be fine score wise, but in general there is no point to closing cards without annual fees. 

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I did call and that's when they gave me $100 the first time after 2 years and then I called and had to threaten to close the account for them to give me another $100.  I never was late in the 2 years I had the card or if I was it was once when I first got the card, If that.

I actually do not have any other store cards and the other cards I have are sub prime (no prime cards).  I just started rebuilding in April.

[debtisgood]

There are many creditors that will not give rebuilders cards or if they do will not grant credit limit increases. I know the macy's increases were paltry but it is best to play with the cards you are dealt than to throw them away. It is 2 years of positive history on your record, I recommend you keep that card on your report for as long as possible.

When you feel you are done rebuilding (or months later) I recommend you call again and let them know how much your scores have improved from when you got the card, talk to a supervisor if necessary. The people I dealt with there have been very friendly - you may not get someone friendly the first time but if you are persistent and treated the card well it will eventually pay off.

Goodluck. Sorry your experiences haven't been great thus far.

[emanuelr1b]

Yes, that was a big credit score mistake.  You should have left that account open, whether you used the card or not.  Your score will drop.  Unfortunately I can't tell you by how many points, but it will drop.

[emanuelr1b]

Wow, how did your scores jump so high in one month?

[kawgirl23]

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emanuelr1b wrote:

Yes, that was a big credit score mistake.  You should have left that account open, whether you used the card or not.  Your score will drop.  Unfortunately I can't tell you by how many points, but it will drop.

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Ok, well after I thought about it over the weekend, I think I may call them to see about reopening the account.  Do you think they will?

[haulingthescoreup]

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kawgirl23 wrote:

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emanuelr1b wrote:

Yes, that was a big credit score mistake. You should have left that account open, whether you used the card or not. Your score will drop. Unfortunately I can't tell you by how many points, but it will drop.

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Ok, well after I thought about it over the weekend, I think I may call them to see about reopening the account. Do you think they will?

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Your scores will not necessarily drop, unless your util is affected enough to raise it into a new tier, and if you're penalized for losing your only retail card. Otherwise, the history stays on for ten years. Please read fused's "Closing Credit Cards", linked in my siggy.

That being said, I think you should try to re-open it now, not in a few months. If it's not costing you fees, then it's not harming you. If you're rebuilding, you need multiple clean accounts reporting month after month after month. That's what creates the new, better history. Use it, PIF it, use it, PIF it. Store cards usually don't have to be used as frequently as bank cards to keep them alive, so you can take it out of your wallet and just pull it out for birthdays, holidays, and so forth. It might not be a heavyweight in the world of CC's for now, but it is helping in its own way.

Macy's is usually pretty good about re-opening, but I would call back immediately in hopes that they wouldn't do a hard inq to re-open. You can tell them something about how you didn't realize that it was helping your credit, and you hope that one day, they'll be willing to give you more significant "guideline" increases. GL