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Contributor
Posts: 83
Registered: ‎04-13-2012
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Will Closing Line of Credit Hurt FICO Score

Ladies, Gentlemen, Experts and Gurus:

 

I have an old, (opened 2004), secured line of credit with a local bank.  The LOC was paid in full and the money used to secure the loan was withdrawn from the bank and is no longer available and is no longer securing any type of LOC.

 

The banks is still reporting the LOC as open, paid as agreed, with a zero balance.  The bank is also reporting the "high credit" and "credit limit" as the same amount.  The original amount of the loan was $8,000.00.

 

Is it better to allow the bank to report the LOC as open, or should I request the bank close the LOC.

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Will Closing Line of Credit Hurt FICO Score

Under account type in your FICO report, does it say "revolving"?

 

What's the latest date reporting within the LOC?

Contributor
Posts: 83
Registered: ‎04-13-2012
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Re: Will Closing Line of Credit Hurt FICO Score


llecs wrote:

Under account type in your FICO report, does it say "revolving"?

 

What's the latest date reporting within the LOC?


It says "revolving"

 

DLA is 2004 and Date Reported is 2004

Super Contributor
Posts: 5,703
Registered: ‎10-06-2007
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Re: Will Closing Line of Credit Hurt FICO Score

Leave it be.

11/28/2014 FICO: EQ: 796 EX:788 TU:803
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Will Closing Line of Credit Hurt FICO Score

+1

New Member
Posts: 37
Registered: ‎06-16-2012
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Re: Will Closing Line of Credit Hurt FICO Score

It should be helping your overall debt ratio

nice CL with 0 debt

you have it drop off or close

then your debt ratio loses 8K in avail credit that you should be getting nice fico points for now

Ghost in Bureau's from 1987 to 2010 (lot's of money no need for credit)
0 2010 in Bureaus
750 average beacon 2012
850 goal
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