Closing Oldest CC.

[Harvey26]

Hey Family,

Quick Question... My mom has an old local credit union card that has an 8.5K limit and 8.99APR also no rewards and has been open since 2009. So about 8 years. I was added as an joint so help build my credit. She has recently opened a Chase Freedom and has had it for almost 2 Years in Sept. and has an 11.5K limit and 14.74APR. (will talk too them about lower it soon.) But how would this affect our credit? She stand at 770 across the board maybe a little higher depending on which CRA. I am current at mid 600s due to high UTL. but I dont plan on applying for any credit anytime soon.

[ChessChik47]

Hi Harvey26,

Why do you need to close it?

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@Harvey26 wrote:

Hey Family,

Quick Question... My mom has an old local credit union card that has an 8.5K limit and 8.99APR also no rewards and has been open since 2009. So about 8 years. I was added as an joint so help build my credit. She has recently opened a Chase Freedom and has had it for almost 2 Years in Sept. and has an 11.5K limit and 14.74APR. (will talk too them about lower it soon.) But how would this affect our credit? She stand at 770 across the board maybe a little higher depending on which CRA. I am current at mid 600s due to high UTL. but I dont plan on applying for any credit anytime soon.

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[Anonymous]

No need to close it if its not bothering you and theres no annual fee.

[Harvey26]

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@ChessChik47 wrote:

Hi Harvey26,

Why do you need to close it?

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@Harvey26 wrote:

Hey Family,

Quick Question... My mom has an old local credit union card that has an 8.5K limit and 8.99APR also no rewards and has been open since 2009. So about 8 years. I was added as an joint so help build my credit. She has recently opened a Chase Freedom and has had it for almost 2 Years in Sept. and has an 11.5K limit and 14.74APR. (will talk too them about lower it soon.) But how would this affect our credit? She stand at 770 across the board maybe a little higher depending on which CRA. I am current at mid 600s due to high UTL. but I dont plan on applying for any credit anytime soon.

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She plans to never use it again and also it hurting my expsoure with CU. They wont extend anymore too me. and they wont just take me off the account the acount has to be closed.

[ChessChik47]

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@Harvey26 wrote:

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@ChessChik47 wrote:

Hi Harvey26,

Why do you need to close it?

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@Harvey26 wrote:

Hey Family,

Quick Question... My mom has an old local credit union card that has an 8.5K limit and 8.99APR also no rewards and has been open since 2009. So about 8 years. I was added as an joint so help build my credit. She has recently opened a Chase Freedom and has had it for almost 2 Years in Sept. and has an 11.5K limit and 14.74APR. (will talk too them about lower it soon.) But how would this affect our credit? She stand at 770 across the board maybe a little higher depending on which CRA. I am current at mid 600s due to high UTL. but I dont plan on applying for any credit anytime soon.

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She plans to never use it again and also it hurting my expsoure with CU. They wont extend anymore too me. and they wont just take me off the account the acount has to be closed.

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Ah, ok...that gives us a lot more information.  If it's hurting your ability to get the credit you need, then do what you need to do.  Note that her AAoA will go down but if she's not looking to get any new credit anytime soon, she should be ok.  

Good luck to you!!

[rmduhon]

The AAoA won't go down while it's still on the reports, closed or not. Generally speaking, accounts will stay on the reports for about ~10 years after closing. However, it can affect the UTI since your available credit will be 8.5k lower than before.

[ChessChik47]

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@rmduhon wrote:
The AAoA won't go down while it's still on the reports, closed or not. Generally speaking, accounts will stay on the reports for about ~10 years after closing. However, it can affect the UTI since your available credit will be 8.5k lower than before.

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You're right!  I always forget that closed accounts keep reporting for 10 years.  Thanks for correcting me.

[empiror22]

Why not wait to close it, right now it helps your utl% and you said your not applying for anything new. If you close this card you lose that 8.5k of utility padding.
Your mom's credit may take a small hit, depends on odd scoring algorithm. When I pay my oldest card to zero I lose about 15 points across the board ( for me for FICO 8).
But in the long term it will not matter for either of you.

[Harvey26]

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@empiror22 wrote:
Why not wait to close it, right now it helps your utl% and you said your not applying for anything new. If you close this card you lose that 8.5k of utility padding.
Your mom's credit may take a small hit, depends on odd scoring algorithm. When I pay my oldest card to zero I lose about 15 points across the board ( for me for FICO 8).
But in the long term it will not matter for either of you.

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Sounds like a good plan. Will what until my accounts age some more and also my debt is down lower.

[Anonymous]

I closed my oldest CC and my credit score went down like 5 points. In a few months it'll go right back up!