I really need the help of some FICO experts. I don’t need a house and I don’t need a car. On one hand I don’t care what my FICO is, but on the other hand I fear a sudden drop may trigger creditors to close accounts, lower credit lines, etc.
I have a credit card, $50k limit. I have a $22k 2.99% balance-transfer existing balance. They want to raise the payment from 2% ($440) to 5% ($1100). That’s quite a hike.
Yes, I can close the account and retain the present terms. But, I loose - I think - the $28k of credit utilization padding. And if a $22k balance closed-account looks like $22k used out of $22k - or $0 - limit, my credit utilization is really shot.
But - here’s the strange part - please follow me here. This account has NEVER shown up on any credit report I have pulled. And to add to that, once when I was talking to TWO supervisors at the credit card company (on an unrelated issue), they asked me why this account did not show up on my credit report. (They too did not see it). One supervisor explained to the other - as I listened - that since it was a balance transfer to my bank account, there was no record of the usage, and if I never charged on it (which I have not), it would not appear on my credit report. His words, not mine.
So, if this is the case, the account is not helping ($28k open credit) or hurting (22k balance) my FICO, and closing it (to keep the $440 payments) would not help or hurt either - it’s transparent. Unless closing it causes it to appear.
So my bottom line questions are: 1) Is there a case of where an account does not show up on one's credit report (as described above), 2) and if so, is it true that closing the account would have no adverse impact since it does not show up anyway?
If the account does not show up on your credit report then it is not used in the calculation of your Fico score. However, the supervisor you overheard is incorrect about why the account does not show up. There is no requirement for charging anything to have a card show up. For example, I have had new accounts show up on my CR before I even received the card, much less charged anything.
I assume the card in question here is a Chase card? Before accepting the offer to I would ask about any ramifications to you accepting the offer. CCC will sometimes treat these offers as settlements which will negatively affect your credit (if the account is reported). This is important. While your account does not currently show up there is nothing stopping the CCC from reporting your account in teh future. This is particularly true if negative status like a settlement comes into olay.
I recently had this type of situation with a capital one card. It was not showing up on my TU report. I filed a complaint with the BBB. I basically said in the complaint I need my Cap One account to show becuase its my oldest account. I went on to say when insurance companies pull my credit score/report they are not getting the credit score I should have.
They responded by saying another credit agency told them to delete it and TU won't add it back. Couple of days later it was added back to my TU reports despite what they said in the response. It tooks years to get it back added. I should have contacted BBB sooner.