Closed account effect

[Anonymous]

HI Myfico,

I was wondering if closing a secured credit card which I hardly use would negatively effect my fico currently and in future?

This secured card will not graduate and wont get a CLI either.

Thanks.

[Aahz]

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@Anonymous wrote:

HI Myfico,

I was wondering if closing a secured credit card which I hardly use would negatively effect my fico currently and in future?

This secured card will not graduate and wont get a CLI either.

Thanks.

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It may have an effect on your total utiliztion negatively depending on what percentage of your total credit lines consists of this credit line.

It may effect your number of cards carrying a balance negatively if you carry a balance on other cards.

It will not effect your Average Age of Accounts until the closed card drops off your reports entirely in aproximately 10 years.

[Anonymous]

It wont effect my util since i pay in full on other cards.  I only carry a 1% balance each month so apart from that it wont have a negative effect?

[Aahz]

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@Anonymous wrote:

It wont effect my util since i pay in full on other cards.  I only carry a 1% balance each month so apart from that it wont have a negative effect?

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Correct.  Until it falls off your reports in ~10 years at which point the AAoA reduction will likely be so small that it won't adjust your score by even a single point.

[RonM21]

Currently, based on your info it should't hurt. All it may do is tighten up your flexibility in utilation by whatever you lose not having that credit line open.