03-23-2012 12:40 PM
For those of you who have used a secured card to help rebuild your credit how long did you keep the card open for? I have been in the process of rebuilding my score and have been approved for an unsecured card. Since i have this one now what i'm wondering is how long I should keep the secured card open for and when I do close it how much will this lower my score?
03-23-2012 12:43 PM
Closing it will NOT necessarily lower your score unless it affect your utilization rate. So if you can keep it down below 9%, and manage to only carry a balance on one of your remaining cards, I don't see why you wouldn't close it. (I'm assuming there is a hefty AF on your card.)
Your good payment record on the card will stay around for 10 more years on your credit report.
03-23-2012 01:33 PM
Actually, depending on what scoring bucket you are in, having only 1 card may lower your score, regardless of utilization. If the AF is a significant burden, that is a different issue. Otherwise, I would leave it until you have 2 or 3 unsecured cards, then close it. Also, if it has been open less than a year, I'd at least get one full year of reported payments before I closed it.
03-23-2012 01:59 PM
Yep I keep my public savings secured CC open because of not it reduces my AAoA and overall limit - at my score range closing it would literally drop me 30+ points