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Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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FICO says, closing won't help your score! BUT Closing and REMOVING?

Ok. So I am sitting here thinking about this statement. True. If you close a card it is still on your credit report for 10 years. Why would closing an account change anything.

But. What if you closed the account and got the creditor to remove all trace of the account from your CR? Maybe an account that is hurting your score can effect things if you removed the tradeline?

I don't know, just throwing this out. It can also backfire if the account was helping your score.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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Posts: 16,374
Registered: ‎03-12-2007
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Re: FICO says, closing won't help your score! BUT Closing and REMOVING?



ilovepizza wrote:
Ok. So I am sitting here thinking about this statement. True. If you close a card it is still on your credit report for 10 years. Why would closing an account change anything.

But. What if you closed the account and got the creditor to remove all trace of the account from your CR? Maybe an account that is hurting your score can effect things if you removed the tradeline?

I don't know, just throwing this out. It can also backfire if the account was helping your score.

This is an interesting subject and is often misunderstood. 
 
1.) Closing any revolving TL can lower your scores if your utilization increases. Example, you have 5 CCs with a total CL of 20K and total balances of 5K that is util of 25%. not so great either.  Let's say you close one of your cards with an 8K CL and balances remain the same.  What you have now is a total CL on your cards of 12K and balances of 5K with util at 42%, worse.  If your util is not effected by closing the accounts and they remain positive, your scores should NOT get dinged
 
2.) No reason on earth to try and delete a closed positive TL, CC or not.  Positve closed TLs have the same positive impact on your scores just as open ones do. 
 
3.) yes removing, not closing, anything negative is good.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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Re: FICO says, closing won't help your score! BUT Closing and REMOVING?

I was thinking about this. I wanted to try things to raise my score and if those accounts backfired open or closed they were there for 10 years. Then I thought about just removing them from my CRA's. But of course only things that had a negative effect. If only inquiries were as easy to erase with a GW letter.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: FICO says, closing won't help your score! BUT Closing and REMOVING?

Pizza wants to get that Orchard card off his report doesn't he? LOL.
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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Re: FICO says, closing won't help your score! BUT Closing and REMOVING?

cute!
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: FICO says, closing won't help your score! BUT Closing and REMOVING?

So do I.
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