topic Have a question on closing a card in Credit Cards

Have a question on closing a card

pizza1 — Mon, 27 Apr 2015 23:50:54 GMT

(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

Re: Have a question on closing a card

Luscher — Mon, 27 Apr 2015 23:53:12 GMT

Great question. I have 2 closed cards that are less then 2 years old, so I am kinda wondering this too. Im assuming no since they are closed.

Re: Have a question on closing a card

pizza1 — Mon, 27 Apr 2015 23:54:45 GMT

@Luscher wrote:
Great question. I have 2 closed cards that are less then 2 years old, so I am kinda wondering this too. Im assuming no since they are closed.

Im hoping some of the experienced peeps will pipe in here, and we can get a more definative answer.

Re: Have a question on closing a card

Luscher — Mon, 27 Apr 2015 23:56:23 GMT

I just can't see a closed card counting against you, other then AAOA or a baddie on it.

Re: Have a question on closing a card

MarineVietVet — Tue, 28 Apr 2015 00:05:24 GMT

@pizza1 wrote:
(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

I keep seeing this posted but wonder where this information is located.

I'm not saying it's wrong but I don't recall anything about new credit being such an absolute. Perhaps it changed during my two year+ absence?

The "newness" begins to fade after about six months or so but saying that scoring will stop considering an account new right at 24 months is new to me.

Someone point me in the right direction on this. If I've missed it along the way I'll be embarrassed for about five seconds but then I'll know I have correct information to pass along to others.

Re: Have a question on closing a card

Luscher — Tue, 28 Apr 2015 00:09:46 GMT

It is a new rumor^^^^ Im confused too. I think a new account is just whatever the lender wants to consider lol.

Re: Have a question on closing a card

myjourney — Tue, 28 Apr 2015 00:49:34 GMT

I've never seen anything that correlates a difference in fico scoring of a closed or open account new or old

Point me too it as well

Re: Have a question on closing a card

coldnmn — Tue, 28 Apr 2015 01:00:34 GMT

My opinion would be if the account is open or closed it would be considered new as long as the inquiry is still listed on the credit report. That would be two years. But each bank may look at it differently.

Re: Have a question on closing a card

Callandra — Tue, 28 Apr 2015 01:05:47 GMT

@MarineVietVet wrote:
@pizza1 wrote:
(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

I keep seeing this posted but wonder where this information is located.

I'm not saying it's wrong but I don't recall anything about new credit being such an absolute. Perhaps it changed during my two year+ absence?

The "newness" begins to fade after about six months or so but saying that scoring will stop considering an account new right at 24 months is new to me.

Someone point me in the right direction on this. If I've missed it along the way I'll be embarrassed for about five seconds but then I'll know I have correct information to pass along to others.

I thought this was posted in some other thread like the other day...can't remember where (I'm tired and losing my mind right now..) but my guess is the assumption is two years as that is as long as the inquiry exists. Although I'm not sure how much of a factor that is in the FICO scoring; honestly, to me a score is a number and nothing more. I care more about my report and keeping it clean plus in terms of being "new," I care more about what the banks' underwriters think than the scoring model. And it seems banks range from anywhere from 6 months to 2 years on an account being "new."

Re: Have a question on closing a card

pizza1 — Tue, 28 Apr 2015 01:06:10 GMT

@coldnmn wrote:
My opinion would be if the account is open or closed it would be considered new as long as the inquiry is still listed on the credit report. That would be two years. But each bank may look at it differently.

Colmn...Thank you!! I sure miss seeing you around here, glad to know you stilll are! Good to see you posting..

On topic... That would make sense. Now the effect of the new acct may lesson over the 2 yr period, but is still considered new until 2 yrs in Fico eyes. Thats all Im really concerned with at this point. So open or closed, if its less than 2 yrs, fico still scores that acct..is that what Im understanding?

Re: Have a question on closing a card

CreditCuriosity — Tue, 28 Apr 2015 01:07:38 GMT

Taked with a credit analyst at chase a few weeks back regarding one of my lovely store cards 2 ( I had total) 1 of them closed and she mentioned the one that I had closed as being new, but pointed it out it was closed, but she clearly noticed it mentioning one of my new 6 accounts in the last 6 months.. So at least chase considers closed cards as new accounts

Re: Have a question on closing a card

Anonymous — Tue, 28 Apr 2015 01:12:29 GMT

@pizza1 wrote:
(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

No, Just close them.

Re: Have a question on closing a card

pizza1 — Tue, 28 Apr 2015 01:15:27 GMT

@Anonymous wrote:
@pizza1 wrote:
(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

No, Just close them.

LOL...somehow Id knew you say that...If FICO still scores the new cloed acct regardless if its open or closed till 2 yrs, then whats the best way handle it? Keep it open now or close it. It seems FICO will score it regardless

Re: Have a question on closing a card

Luscher — Tue, 28 Apr 2015 01:16:29 GMT

Then it doesn't matter right? It will be scored the same either way. So its up to you.

Re: Have a question on closing a card

MarineVietVet — Tue, 28 Apr 2015 01:16:58 GMT

I keep reading opinions on this but I'm still looking for information from FICO on the subject and so far my search hasn't turned up anything.

Re: Have a question on closing a card

coldnmn — Tue, 28 Apr 2015 01:18:18 GMT

@pizza1 wrote:
@coldnmn wrote:
My opinion would be if the account is open or closed it would be considered new as long as the inquiry is still listed on the credit report. That would be two years. But each bank may look at it differently.
Colmn...Thank you!! I sure miss seeing you around here, glad to know you stilll are! Good to see you posting..

On topic... That would make sense. Now the effect of the new acct may lesson over the 2 yr period, but is still considered new until 2 yrs in Fico eyes. Thats all Im really concerned with at this point. So open or closed, if its less than 2 yrs, fico still scores that acct..is that what Im understanding?

That's what I would think. Banks like Barclay are more sensitive the newer the inquiries and accounts are. That's why after 6 months they become less of a problem after a year not figured in credit score unless manually reviewed. Two years no longer considered. Just my 2 cents.

Re: Have a question on closing a card

Anonymous — Tue, 28 Apr 2015 01:18:44 GMT

@pizza1 wrote:
@Anonymous wrote:
@pizza1 wrote:
(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports. My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal. Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed. I know that a positive acct can stay on your reports for up to 10yrs.

Thanks for any input

No, Just close them.
LOL...somehow Id knew you say that...If FICO still scores the new cloed acct regardless if its open or closed till 2 yrs, then whats the best way handle it? Keep it open now or close it. It seems FICO will score it regardless

Why so worried about score if you're not apping?

Re: Have a question on closing a card

pizza1 — Tue, 28 Apr 2015 01:19:37 GMT

@MarineVietVet wrote:
I keep reading opinions on this but I'm still looking for information from FICO on the subject and so far my search hasn't turned up anything.

Thats why I posted this MV... I wasnt coming up with anything, but then again, maybe I wasnt looking in the right spots in my research. Believe me, I try to research as much as I can on certain topics before i come to the boards and ask.

Re: Have a question on closing a card

CreditCuriosity — Tue, 28 Apr 2015 01:20:48 GMT

@MarineVietVet wrote:
I keep reading opinions on this but I'm still looking for information from FICO on the subject and so far my search hasn't turned up anything.

MyFico is a black box.. We know alot about how scoring works, but some things we will never know. IMO it should all be public information, but that is just my thought pattern vs vague 5 make ups of the score.

Re: Have a question on closing a card

Anonymous — Tue, 28 Apr 2015 01:22:49 GMT

@CreditCuriousity wrote:
@MarineVietVet wrote:
I keep reading opinions on this but I'm still looking for information from FICO on the subject and so far my search hasn't turned up anything.
MyFico is a black box.. We know alot about how scoring works, but some things we will never know. IMO it should all be public information, but that is just my thought pattern vs vague 5 make ups of the score.

It should be free too.