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OpenSky cardholders...

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gdale6
Moderator Emeritus

Re: OpenSky cardholders...


@Anonymous wrote:
@Norman Because your credit still gets docked for canceling accounts. Says who????  There is no docking you that I am aware of as long as your utilization of all revolvers is in check.. Closing a revoving card with high balances on other cards is not recommended.  Even if the point loss is only temporary, it matters. I'm not arguing that there aren't good non-graduating secured cards but having arsenal of them don't do much good for your AAoA. Plus, replacing those cards means docking your score again when getting the new ones. That's sort of a double whammy on your score of you ask me. To each their own, though.

@PantherLady thanks for the info! I'm not worried too much about the US Bank and BoA only because eventually they graduate to unsecured anyway. I just don't want all of these starter accounts to remain at "secured" status because I plan to keep them. The Opensky card, I will probably end up canceling anyway because hey charge a fee.

 

Message 11 of 16
Anonymous
Not applicable

Re: OpenSky cardholders...

Maybe it does. Maybe it doesn't. I don't know from experience—only from what I've read. All I know is that if rather not find out if I don't have to.
Message 12 of 16
Anonymous
Not applicable

Re: OpenSky cardholders...


@Anonymous wrote:
@Norman Because your credit still gets docked for canceling accounts. Even if the point loss is only temporary, it matters. I'm not arguing that there aren't good non-graduating secured cards but having arsenal of them don't do much good for your AAoA. Plus, replacing those cards means docking your score again when getting the new ones. That's sort of a double whammy on your score of you ask me. To each their own, though.

@PantherLady thanks for the info! I'm not worried too much about the US Bank and BoA only because eventually they graduate to unsecured anyway. I just don't want all of these starter accounts to remain at "secured" status because I plan to keep them. The Opensky card, I will probably end up canceling anyway because hey charge a fee.

Thats a myth:
http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-2.aspx


 

From the article:

"Q: Will closing lesser-used low-credit limit (less than $5,000) credit cards or lines of credit harm or help our overall credit scores, given two or three other higher-limit accounts?"


"To answer this, it really depends on how much you owe on those accounts. If you close an account, and you don't owe anything on it, that account will no longer be included in that calculation that looks at your balances to limits on your credit cards."


 

So if you keep you UTI% low and all one one card, closing an account is simply a non-issue, scorewise. It will still count towards AAoA for the next ten years. And AAoA, IMO, is another area of scoring that is highly overstated anyway.

 

While the article in general is not in favor of closing accounts, it fails to take into account the cost of Annual Fees - it simply argues that there is no score ADVANTAGE to closing accounts, but it also points out that there really is no immediate disadvantage either, IF UTI IS UNDER CONTROL. Yes, there *may* be a slight negative affect to AAoA, ten years down the road.

 

FWIW, I'm not arguing for 'having an arsenal of them', I personally would not suggest more than two. Six to twelve months of good payment history on two revolving accounts *should* in most cases, drive your scores up enough qualify you for a couple of unsecured accounts, unless you have a huge array of derogs, i.e., multiple recent late, recent CO's, recent collections and judgments. If you only have 3 revolving accounts (the recommended number) opening another, 12 months down the road ISN"T going to ding you for new accounts. It simply isn't. Now, OTOH, if you have opened 5 accounts in the last couple of months, then yeah, opening a new account WILL ding your score.

 

Regarding the US Bank secured cards - I'm a US Bank customer and I actually inquired last month (at my local branch) about the Harley Davidson Secured card. The rep told me it does not *graduate* per se, to unsecured status, but rather they close it at the 12 month mark, cut you a check for your deposit and open a new unsecured account.

Message 13 of 16
Anonymous
Not applicable

Re: OpenSky cardholders...


NormanFH wrote

 

Regarding the US Bank secured cards - I'm a US Bank customer and I actually inquired last month (at my local branch) about the Harley Davidson Secured card. The rep told me it does not *graduate* per se, to unsecured status, but rather they close it at the 12 month mark, cut you a check for your deposit and open a new unsecured account.


This was my understanding of this card as well.

Message 14 of 16
Anonymous
Not applicable

Re: OpenSky cardholders...

To clarify, does this mean Eq and Trans don't report at all, or it just doesn't say "secured"? I was just approved for this card. thanks in advance!

Message 15 of 16
Anonymous
Not applicable

Re: OpenSky cardholders...


@Anonymous wrote:

To clarify, does this mean Eq and Trans don't report at all, or it just doesn't say "secured"? I was just approved for this card. thanks in advance!


Equifax and TransUnion do not report it as "secured" on my reports.

Message 16 of 16
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