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Does this make sense?

Frequent Contributor

Does this make sense?

So I have been contemplating on closing my credit one card for some time now but was very afriad because 1. i am not sure how this is going to mess things up for me because I am in the process of buying an apartment 2. i am not sure if it will mess up my score or my AAOA...the credit one card is my first card but I F***KING hate the card so much and I also have a kohls card that has been at a 300 limit for almost two years, it is 2 months younger than my credit one card...

 

Here are my cards 

 

Capital One Quicksilver One 

Capital One Quicksliver 

Capital One Secured

Discover Secured

Victoria Secret

Gap

MCU (credit union) visa credit card

Kohls 

Credit one 

 

I will be combining my quicksilver cards next month (paying off the balance on one of the cards) and I was considering closeing the credit one card and kohls card but my AAOA is only 2 years old so I am not sure if I should just cut them up and keep them on my file or just cancel them and risk the possible score drop...What would you do??

 




Starting Score: 525
Current Score: EX 622 TU 648 EX 618
Goal Score: 700

My Fico Challenge starting 2016
7 REPLIES
Frequent Contributor

Re: Does this make sense?

The only potential negative effect to your score from closing unwanted/un-needed cards is that it will affect your available credit, and therefore can raise your utilization if you are carrying balances on other cards.

 

It will not affect your AAoA, since the accounts are already opened.  They will remain on your history/report for years, just appearing as "closed by consumer" instead of "open."  This is why their limits will no longer count in your available credit.

 

Especially with the Credit One card, if you are paying fees and/or dealing with hassle you really don't need to have, close it immediately.  The Kohl's card is a store card, so no fees or whatever there, which means you could just throw it in your sock drawer and let that $300 remain in your available credit, since it doesn't cost anything.

Community Leader
Super Contributor

Re: Does this make sense?

I concur. Closing it should not hurt you.

Most Recent FICO 8 Scores EX592/TU539/EQ574 11/01/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Frequent Contributor

Re: Does this make sense?


hmw_75 wrote:

The only potential negative effect to your score from closing unwanted/un-needed cards is that it will affect your available credit, and therefore can raise your utilization if you are carrying balances on other cards.

 

It will not affect your AAoA, since the accounts are already opened.  They will remain on your history/report for years, just appearing as "closed by consumer" instead of "open."  This is why their limits will no longer count in your available credit.

 

Especially with the Credit One card, if you are paying fees and/or dealing with hassle you really don't need to have, close it immediately.  The Kohl's card is a store card, so no fees or whatever there, which means you could just throw it in your sock drawer and let that $300 remain in your available credit, since it doesn't cost anything.


You made a great point there with the kohls card...Thank you so much 




Starting Score: 525
Current Score: EX 622 TU 648 EX 618
Goal Score: 700

My Fico Challenge starting 2016
Valued Contributor

Re: Does this make sense?

If you are in the active mortgage process I wouldn't advise any changes until closed and keys in hand
Community Leader
Epic Contributor

Re: Does this make sense?

With respect to affect on your AAoA, while closing will not remove it from continued inclusion in your AAoA scoring, the factor beyond your control is that the creditor could decide, in order to simply future reporting, to then delete the entire account.

In that event, it would be removed from AAoA scoring.

Frequent Contributor

Re: Does this make sense?


Sbrooks1 wrote:
If you are in the active mortgage process I wouldn't advise any changes until closed and keys in hand

I am still in the saving process. Doing my pre approval the end of this year




Starting Score: 525
Current Score: EX 622 TU 648 EX 618
Goal Score: 700

My Fico Challenge starting 2016
Valued Contributor

Re: Does this make sense?

Then close that puppy, I plan on app in January and I closed credit one and Merrick on July 1❤️Felt good but I did lose 5/4 points but could have been some other random factor that's not obvious ! Good luck