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barney_fife1
Posts: 1
Registered: ‎02-24-2009
0

Open or close accounts.

I just recently opened a department store CC to get 50% off the entire purchase. I paid it off the next week. Should I close the account or just keep it open with 0 balance? Will it affect my score either way I go?

 

Thanks!

Regular Contributor
pumbaablah
Posts: 190
Registered: ‎08-14-2008
0

Re: Open or close accounts.

You might as well keep it now since its open. If it won't cost you a annual fee in a year then keep it.

Moderator Emeritus
MarineVietVet
Posts: 14,484
Registered: ‎07-14-2009
0

Re: Open or close accounts.

 


barney_fife1 wrote:

I just recently opened a department store CC to get 50% off the entire purchase. I paid it off the next week. Should I close the account or just keep it open with 0 balance? Will it affect my score either way I go?

 

Thanks!


 

Welcome to the forums.

 

The effects on your score from a new inquiry, new credit, and a possible lowering of your AAoA (Average Age of Accounts) has already happened and closing this account will not change your score at all since it has a zero balance. Even if you close it now it will continue to show on your reports for up to 10 years which will help your AAoA and credit length history.

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

Frequent Contributor
writemikep
Posts: 277
Registered: ‎10-21-2008
0

Re: Open or close accounts.

[ Edited ]

Also, if it's your only department store card (ie a revolving 'charge account', and not a VISA/MC/AMEX affiliated card), that will help your credit mix, and add a few points to your FICO score.  So leaving it open may be preferable.

Regular Contributor
sgs10
Posts: 204
Registered: ‎08-03-2010
0

Re: Open or close accounts.

use it as a sock drawer card and make some small purchases now and then prefreably coffee etc. If you close an account it will have impact on your utilization ratio.

Moderator Emeritus
MarineVietVet
Posts: 14,484
Registered: ‎07-14-2009
0

Re: Open or close accounts.

 


sgs10 wrote:

use it as a sock drawer card and make some small purchases now and then prefreably coffee etc. If you close an account it will have impact on your utilization ratio.


 

Not in every case. You will not be punished by simply closing a CC as long as it is in good standing, has a $0 balance and your cumulative utilization remains at 1-9 %.

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score


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