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MishaMisha123
Posts: 4
Registered: ‎05-20-2007
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Does an account, closed due to POSSIBLE fradulent activity, hurt your credit score?

Chase credit card company called me and said there was an authorization for $1.00 from "Chevy Chase Bank" on my Chase Visa, and wanted to know if I recognized the charge. I did not, as I don't use the card often (only where Discover and AX isn't accepted). The rep told me that that is often a sign of someone trying card numbers in order to find a valid card number for future fradulent charges. They closed the account and will be sending me a new card. My question is how does this affect my credit score, now that one account is closed less than a year after it was opened, and a new account is opened?
 
I asked the rep, but these people aren't trained in Fico scoring, so of course he said "it won't affect your credit". I assume that's just a canned response.
 
I work in the electronic payment processing industry, and I know that merchants will often authorize (but not settle - so the card is never charged) a card for $1.00 just to verify they are able to process credit cards again (often during troubleshooting). I can't imagine every one of those cards is flagged?
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Does an account, closed due to POSSIBLE fradulent activity, hurt your credit score?

I think you'll be alright, but you can call back and ask them to confirm that the new card will have the same issue date as the old.

My youngest misplaced her new MC right after she got it in the mail, and USAA replaced it. The new one has the same opening date.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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dwarfess
Posts: 149
Registered: ‎11-03-2007
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Re: Does an account, closed due to POSSIBLE fradulent activity, hurt your credit score?

[ Edited ]
Should have no affect on your scores.  I had similar incident w/BofA.  The balance & confirmed outstanding transactions from the old card were transferred over to the new card as well as payment history, date opened, CL, etc...  The old card is now reported as 'lost or stolen', closed and $0 balance. 


Message Edited by dwarfess on 01-28-2008 05:15 PM

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