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Closing Account???

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Charger_Fan19
Contributor

Closing Account???

Yesterday I got a letter in the mail from capital one telling me that they are changing the terms on my account. The annual fee is going from $19 a year to $89. I spoke to someone and I was told there was nothing they could do about it and I didn't have to worry because the fee wouldn't hit until Feb of 2011. They already nailed me in January with an interest rate hike.

 

I want to close the account because I am annoyed at the change of terms. The account is maxed at a CL of $500 and has nowhere to go. It was one of those credit builder cards. I got the card at $200 and got an increase to $500 several years ago and it has sat there ever since. I'm in the process of rebuilding my credit and all of my baddies will drop off my report by jan 2011. When the dust settles, my scores should be around 680-700.

 

The only thing stopping me is that this is my oldest account. What kind of hit can I expect when I do this score wise?

 

Thanks for your advice.

 


Starting Score: EQ 500 TU 500 EX 500
Current Score: EQ 647 TU 685 EX 684 9/2/16 Recommitted to Fico Health! Smiley Happy
Goal Score: 700
Message 1 of 3
2 REPLIES 2
MarineVietVet
Moderator Emeritus

Re: Closing Account???

 


@cowgirl79 wrote:

Yesterday I got a letter in the mail from capital one telling me that they are changing the terms on my account. The annual fee is going from $19 a year to $89. I spoke to someone and I was told there was nothing they could do about it and I didn't have to worry because the fee wouldn't hit until Feb of 2011. They already nailed me in January with an interest rate hike.

 

I want to close the account because I am annoyed at the change of terms. The account is maxed at a CL of $500 and has nowhere to go. It was one of those credit builder cards. I got the card at $200 and got an increase to $500 several years ago and it has sat there ever since. I'm in the process of rebuilding my credit and all of my baddies will drop off my report by jan 2011. When the dust settles, my scores should be around 680-700.

 

The only thing stopping me is that this is my oldest account. What kind of hit can I expect when I do this score wise?

 

Thanks for your advice.

 


 

If you can pay this off before you close it there will be no hit on your score. It will continue to report for up to 10 years after closing.

 

Here is a good thread about Closing Credit Cards.

 

 

 

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


Message 2 of 3
RobertEG
Legendary Contributor

Re: Closing Account???

I agree with marinevet. 

Closing of the account does not cause you to lose its length of credit history.

It could remain, even as a closed account, as part of your oldest acccount, or part of your AAoA scoring, forever.

Nothing in the FCRA ever mandates account deletion from your CR just by closure.  And FICO scores both open and closed accounts in your CR with regard to length of credit history.

You face two things with account closure.  You lose its CL, if paid when closed. So it might increase your % util.  If it is a low CL card, that impact is minimal.

 

You also face the uncontrollable prospect that the OC may just delete the entire account.  Then you will lose its length of credit history.

So dont ask for account deletion when you close the account.

 

 

Message 3 of 3
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