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Established Contributor
Posts: 556
Registered: ‎01-31-2008
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Impact of a c reditor closing account

I'm looking to phase out a couple of cards that have lower limits, or no rewards.  I want to bring them down to 0 and essentially sock-drawer them rather than close them.  Of course, I realize there's a risk that a creditor could close them due to lack of usage (I'm thinking Barclays could do that).  I figure I could help my chances by making 1 or 2 purchases a month and paying off, but still, there's always that chance.  That said, what's the impact of a creditor closing your account with a 0 balance?

Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $4500
Moderator
Posts: 27,206
Registered: ‎09-13-2012
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Re: Impact of a c reditor closing account

Impact to your score? None if the balance is zero and you don't need the CL for util.
Established Contributor
Posts: 556
Registered: ‎01-31-2008
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Re: Impact of a c reditor closing account

Thanks. I understand about the util. I was more unsure about the listing of "account closed by grantor" or something like that causing a ding on your score. Also, is be curious how other lenders look at that.
Chase Freedom: $1500, Citi Diamond Preferred: $3000, Barclays: $3900, Chase Disney Visa: $1500, Chase Southwest Signature: $5000, Citi TY Preferred: $3000, Cap One Platinum: $1750, Cap One Platinum Rewards: $2500, Orchard Bank: $900, Kay Store Card: $4500
Moderator
Posts: 27,206
Registered: ‎09-13-2012
0

Re: Impact of a c reditor closing account

No impact at all. Cards are closed for inactivity or upgrades. I have several on my CR's and I have had no repercussions since they were closed.
Frequent Contributor
Posts: 263
Registered: ‎08-14-2011
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Re: Impact of a c reditor closing account

One thing to consider is if this card is your oldest credit line. Eventually, closing this card will make your oldest credit line "younger" if it is.

But keep in mind the history associated with that card will stay in your file for 10years. So that effect will be down the road a ways.
bobebob || Nov: My FICO SW EQ(Upgraded Version) = 822 ||Sept: Walmart TU Fico=838Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
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