Re: Should I close a credit card I just opened?
11-20-2012 08:42 AM
BOFA at least takes the highest daily balance (may be up to the minute even) so there's no need to even let that balance report if you're worried about a near-term application.
This is interesting. You're saying that BofA reports to the credit bureaus the highest daily (or minute-ly) balance as the highest balance? I've learned something new today!
Anyway, closing a no-annual fee credit card from a prime lender is almost always a bad idea.
Yeah, I found that out explicitly over the past year; some lenders will only report the high balance if it's an end of statement balance; however, BOFA is not one of them. I had a near maxxed card which I was going to let report before I got the heeby jeebies and simply paid the balance... turns out that the top balance of the month (may not have included pending charges though) was what wound up in the high balance line for my BOFA credit card, rather than the statement balance.
Actually did this twice over the last year and was identical behavior each time. I don't know if it's a daily sweep though or if it's just instant in time highest balance, for most people it doesn't matter too much I suspect unless you're trying to goose the high balance near the end of a reporting cycle and you have a near-term application coming up. Personally I do this on my cards almost as soon as I actually get them and I don't apply for much anyway so it's never been an issue for me.
Current Score: EQ 04 679, EQ 8 703, TU 708, EX 702* (05/30/14, EX older)
Goal Score: 700 in all three (01/01/15)
Take the myFICO Fitness Challenge