Secured Credit Card Question

Anonymous · ‎03-05-2015

So I first started building credit with a secured credit card but I dont know what to do with it now.

These are my choices:

- leave the card at home so my AAoA doesnt get affected since this is the longest card

- close the account (will make my credit history worse tho since its my oldest accountt)

- or what?

What choices do i have??

Thanks!

Creditaddict · ‎03-05-2015

@Anonymous wrote:
So I first started building credit with a secured credit card but I dont know what to do with it now.
These are my choices:
- leave the card at home so my AAoA doesnt get affected since this is the longest card
- close the account (will make my credit history worse tho since its my oldest accountt)
- or what?

What choices do i have??

Thanks!

1. You close it

2. Closing credit does not effect your AAoA because positive accounts continue to report for 10 years... lots of confusion that closing accounts hurts you but the only thing closing accounts does that "could" hurt you is reduce your overall utilization because you won't have that available credit reporting anymore but if your util. is in check with the other accounts you probably won't see a change at all!

Anonymous · ‎03-05-2015

Who is your secured card with? Some companies will graduate you and give you your money back.

The card will remain reporting for 10 years after you close it, so it won't kill your AAoA, but it may hurt your utilization percentages if it's a bigger credit limit and you don't have other credit limits to counteract it (doesn't look like that will be an issue for you based on your siggy). You'd probably be fine to close it so long as the other cards you have stick around and age well.

Anonymous · ‎03-05-2015

@Anonymous wrote:
Who is your secured card with? Some companies will graduate you and give you your money back.

The card will remain reporting for 10 years after you close it, so it won't kill your AAoA, but it may hurt your utilization percentages if it's a bigger credit limit and you don't have other credit limits to counteract it (doesn't look like that will be an issue for you based on your siggy). You'd probably be fine to close it so long as the other cards you have stick around and age well.

Its with capital one bank

Creditaddict · ‎03-05-2015

@Anonymous wrote:

@Anonymous wrote:
Who is your secured card with? Some companies will graduate you and give you your money back.

The card will remain reporting for 10 years after you close it, so it won't kill your AAoA, but it may hurt your utilization percentages if it's a bigger credit limit and you don't have other credit limits to counteract it (doesn't look like that will be an issue for you based on your siggy). You'd probably be fine to close it so long as the other cards you have stick around and age well.
Its with capital one bank

close it! they don't graduate.

Anonymous · ‎03-05-2015

@Creditaddict wrote:
@Anonymous wrote:
So I first started building credit with a secured credit card but I dont know what to do with it now.
These are my choices:
- leave the card at home so my AAoA doesnt get affected since this is the longest card
- close the account (will make my credit history worse tho since its my oldest accountt)
- or what?

What choices do i have??

Thanks!
1. You close it
2. Closing credit does not effect your AAoA because positive accounts continue to report for 10 years... lots of confusion that closing accounts hurts you but the only thing closing accounts does that "could" hurt you is reduce your overall utilization because you won't have that available credit reporting anymore but if your util. is in check with the other accounts you probably won't see a change at all!

So even if I close the account with $0 balance, it will continue to report to my credit history as a positive account which means payment on time for 10 years??

Creditaddict · ‎03-05-2015

@Anonymous wrote:
@Creditaddict wrote:
@Anonymous wrote:
So I first started building credit with a secured credit card but I dont know what to do with it now.
These are my choices:
- leave the card at home so my AAoA doesnt get affected since this is the longest card
- close the account (will make my credit history worse tho since its my oldest accountt)
- or what?

What choices do i have??

Thanks!
1. You close it
2. Closing credit does not effect your AAoA because positive accounts continue to report for 10 years... lots of confusion that closing accounts hurts you but the only thing closing accounts does that "could" hurt you is reduce your overall utilization because you won't have that available credit reporting anymore but if your util. is in check with the other accounts you probably won't see a change at all!
So even if I close the account with $0 balance, it will continue to report to my credit history as a positive account which means payment on time for 10 years??

yes

Anonymous · ‎03-05-2015

@Creditaddict wrote:
@Anonymous wrote:
@Creditaddict wrote:
@Anonymous wrote:
So I first started building credit with a secured credit card but I dont know what to do with it now.
These are my choices:
- leave the card at home so my AAoA doesnt get affected since this is the longest card
- close the account (will make my credit history worse tho since its my oldest accountt)
- or what?

What choices do i have??

Thanks!
1. You close it
2. Closing credit does not effect your AAoA because positive accounts continue to report for 10 years... lots of confusion that closing accounts hurts you but the only thing closing accounts does that "could" hurt you is reduce your overall utilization because you won't have that available credit reporting anymore but if your util. is in check with the other accounts you probably won't see a change at all!
So even if I close the account with $0 balance, it will continue to report to my credit history as a positive account which means payment on time for 10 years??
yes

THank U!

Anonymous · ‎03-05-2015

@Creditaddict wrote:
@Anonymous wrote:

@Anonymous wrote:
Who is your secured card with? Some companies will graduate you and give you your money back.

The card will remain reporting for 10 years after you close it, so it won't kill your AAoA, but it may hurt your utilization percentages if it's a bigger credit limit and you don't have other credit limits to counteract it (doesn't look like that will be an issue for you based on your siggy). You'd probably be fine to close it so long as the other cards you have stick around and age well.
Its with capital one bank
close it! they don't graduate.

Thank u!!