topic Re: CLOSING RETAIL STORE CARD in Credit Cards

CLOSING RETAIL STORE CARD

triplethrees — Sat, 18 Jun 2016 13:33:51 GMT

I have a retail store card that i have finally paid off and has an attractive credit limit. My score is Tier 1 currently and this is my question. I very rarely use this account but at the same time i'm wondering if i should close it? But that leads me to my next question. How will closing this account affect my credit score? I have no future major purchases coming up but at the same time i really don't want to use this card. I currently have two additional store cards maintained monthly and a personal loan, minimal student loan payments, three mortgages, and some other credit carried on paper i.e auto lease etc. I have three other credit cards and those balances are paid off as well. I do not use those credit cards as keep them as a safety next depending on any unforseen circumstances. What is the best option here?

Re: CLOSING RETAIL STORE CARD

Anonymous — Sat, 18 Jun 2016 15:28:31 GMT

@triplethrees wrote:
I have a retail store card that i have finally paid off and has an attractive credit limit. My score is Tier 1 currently and this is my question. I very rarely use this account but at the same time i'm wondering if i should close it? But that leads me to my next question. How will closing this account affect my credit score? I have no future major purchases coming up but at the same time i really don't want to use this card. I currently have two additional store cards maintained monthly and a personal loan, minimal student loan payments, three mortgages, and some other credit carried on paper i.e auto lease etc. I have three other credit cards and those balances are paid off as well. I do not use those credit cards as keep them as a safety next depending on any unforseen circumstances. What is the best option here?

Closing any credit card whether it's a store or major credit card does not affect your credit score at all with the exception of one minor possibility. Closing any card will affect your overall available credit limit which is a factor in determining our utilization of available credit which is a factor in Fico credit scoring. So if the card you're considering closing has a large limit and is a big part of your overall available credit and you carry balances then it could temporarily affect your score. If it isn't and to don't carry balances then close away.

Re: CLOSING RETAIL STORE CARD

Anonymous — Sat, 18 Jun 2016 15:31:40 GMT

What is this CL and your TCL? In other words, how much would closing this affect your available credit?

How old is this account compared to your other accounts? Closing your oldest account could negatively affect your score.

Mostly closing an account you don't use is not going to change too much outside of those issues. It will continue to report your good payment history for another 10 years. On the other hand, there is no harm in keeping it open and allowing it to continue to report either.

Re: CLOSING RETAIL STORE CARD

Anonymous — Sat, 18 Jun 2016 15:37:40 GMT

@Anonymous wrote:
What is this CL and your TCL? In other words, how much would closing this affect your available credit?

How old is this account compared to your other accounts? Closing your oldest account could negatively affect your score.

Mostly closing an account you don't use is not going to change too much outside of those issues. It will continue to report your good payment history for another 10 years. On the other hand, there is no harm in keeping it open and allowing it to continue to report either.

Closing your oldest card will not affect your Fico score at all. ( it may affect your Vantage score but as that isn't really in use by creditors so far, it's not really a factor). It will continue to be your oldest card for 10 years. I see people often post this and it's not correct. Other than that your info is correct.

Re: CLOSING RETAIL STORE CARD

Anonymous — Sat, 18 Jun 2016 15:50:30 GMT

@Anonymous wrote:
@Anonymous wrote:
What is this CL and your TCL? In other words, how much would closing this affect your available credit?

How old is this account compared to your other accounts? Closing your oldest account could negatively affect your score.

Mostly closing an account you don't use is not going to change too much outside of those issues. It will continue to report your good payment history for another 10 years. On the other hand, there is no harm in keeping it open and allowing it to continue to report either.
Closing your oldest card will not affect your Fico score at all. ( it may affect your Vantage score but as that isn't really in use by creditors so far, it's not really a factor). It will continue to be your oldest card for 10 years. I see people often post this and it's not correct. Other than that your info is correct.

I knew that. My brain is apparently not awake yet.

Re: CLOSING RETAIL STORE CARD

Anonymous — Sat, 18 Jun 2016 15:59:04 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
What is this CL and your TCL? In other words, how much would closing this affect your available credit?

How old is this account compared to your other accounts? Closing your oldest account could negatively affect your score.

Mostly closing an account you don't use is not going to change too much outside of those issues. It will continue to report your good payment history for another 10 years. On the other hand, there is no harm in keeping it open and allowing it to continue to report either.
Closing your oldest card will not affect your Fico score at all. ( it may affect your Vantage score but as that isn't really in use by creditors so far, it's not really a factor). It will continue to be your oldest card for 10 years. I see people often post this and it's not correct. Other than that your info is correct.
I knew that. My brain is apparently not awake yet.

I have the same problem quite often

Re: CLOSING RETAIL STORE CARD

Boonie — Sat, 18 Jun 2016 16:20:41 GMT

I recently closed about 10 comenity and 10 Synchrony store cards. I collected them when I was building my credit, but really didn't use them much. I have a ton of available credit, so no worry on utilization now. My scores actually went up, but I think it was a coincident of paying down several accounts last month.

Re: CLOSING RETAIL STORE CARD

RonM21 — Sat, 18 Jun 2016 20:00:17 GMT

OP, it depends on your situation and if that will work for you. The effect it can have on decreasing your overall available credit is probably the biggest thing to consider.