tommy123
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tommy123
Posts: 1
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 07:52 AM

I disagree.
 
On my CR, the closed account has a credit limit of $0.  So in short term, it does have a neg impact.
 
on long term, there is another impact, it reduces my acccount age when it's removed.
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stu
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stu
Posts: 1
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. No it is not OK

‎07-31-2007 08:55 AM

Personal experience: I closed 6 credit card accounts that I had for over 10 years. My credit score dropped 35 points. It has been 1 year since this happened and it has not yet risen to the same level as before the cancellations. I charge about 10k / mo. on cards and carry no debt.
 
You can talk your credit card companies into waiving the annual fees.
 
I will never cancell a card again!
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deemonee
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deemonee
Posts: 3
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 09:09 AM

It can hurt you if you do not have a lot of credit. I'm 22 years old so for me to close an account is a bad idea because the ratio of having credit versus not having credit. I have a better explanation for it but I'm at work and can't talk much about it!
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Stiles
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Stiles
Posts: 2
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 09:16 AM

So will closing accounts with smaller balances help?  It is my understanding that cards with small available credit lines and not looked upon favorably.
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Stiles
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Stiles
Posts: 2
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 09:16 AM

 
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scorecrazybob
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scorecrazybob
Posts: 2
Registered: ‎07-31-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 09:35 AM

Is it better to have them close the account because of inactivity or for you to close it?
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Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 10:12 AM


scorecrazybob wrote:
Is it better to have them close the account because of inactivity or for you to close it?

Makes no difference to your score.
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Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Closing Aged Accounts.. Yes It Is Ok
[ Edited ]

‎07-31-2007 10:13 AM - edited ‎07-31-2007 10:13 AM


Stiles wrote:
So will closing accounts with smaller balances help?  It is my understanding that cards with small available credit lines and not looked upon favorably.

You want $0 balance on closed accounts.


Message Edited by Tuscani on 07-31-2007 12:13 PM
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Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 10:15 AM


deemonee wrote:
It can hurt you if you do not have a lot of credit. I'm 22 years old so for me to close an account is a bad idea because the ratio of having credit versus not having credit. I have a better explanation for it but I'm at work and can't talk much about it!

Remember.. this thread addresses the worry of lost age and closing accounts.. util still applies no matter if the account is closed or open.
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Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
Re: Closing Aged Accounts.. Yes It Is Ok

‎07-31-2007 10:30 AM

OK, tell me if I've got this right:
 
Say I have a five-year old card.  I close it today.  Two years from today, does it count towards my history as a seven-year old card?  It's not frozen in time today when I close it as a five-year old? 
-----------------
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
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