topic Re: HELP!!! First Premier Closed, 39 point decrease in Credit Cards

HELP!!! First Premier Closed, 39 point decrease

steele70 — Mon, 20 Mar 2017 10:33:25 GMT

All,

Here is the alert that I got over the weekend from myFICO. I read some posts in here that closing an account would not hurt scores, AAoA, etc. if the account is closed, because it stays on your report for about 10 years. I closed the account due to it having a Monthly and Annual Fee, and I was fairly confident after researching everything that it would not drop my score.

Is there anything I can do? I did notice that it doesn't say closed account, but paid loan. This was not a loan. Should I dispute?

Any guidance would be greatly appreciated.

603393/18/2017 ExperianAn account listed on your credit report has been updated

FICO® SCORE CHANGE

642

603

View score history

DETAILS

COMPANY NAMEFIRST PREMIER BANK

AMOUNT
$0.00

STATUS
Paid Loan

What does this mean?Dispute this change

Re: HELP!!! First Premier Closed, 39 point decrease

Anonymous — Mon, 20 Mar 2017 10:39:10 GMT

Did your utilization go up?

Re: HELP!!! First Premier Closed, 39 point decrease

Anonymous — Mon, 20 Mar 2017 10:44:10 GMT

Something else triggered the score change. UTI would more than likely be the issue. Example it you had 2 cards both with a 1000 SL and had 500 reporting you'd have 25% UTI. Close 1 and you jump to 50%.
UTI has no memory, bring the UTI down to 1-9% scores will come right back.

Re: HELP!!! First Premier Closed, 39 point decrease

Anonymous — Mon, 20 Mar 2017 10:48:14 GMT

@steele70 wrote:
All,

Here is the alert that I got over the weekend from myFICO. I read some posts in here that closing an account would not hurt scores, AAoA, etc. if the account is closed, because it stays on your report for about 10 years. I closed the account due to it having a Monthly and Annual Fee, and I was fairly confident after researching everything that it would not drop my score.

Is there anything I can do? I did notice that it doesn't say closed account, but paid loan. This was not a loan. Should I dispute?

Any guidance would be greatly appreciated.

603393/18/2017 ExperianAn account listed on your credit report has been updated
FICO® SCORE CHANGE
642
603
View score history
DETAILS
COMPANY NAMEFIRST PREMIER BANK
AMOUNT
$0.00
STATUS
Paid Loan
What does this mean?Dispute this change

There isn't really anything to dispute. The language of paid loan is the common terminology for an account that is closed with no balance due. Assuming your utlization did not shoot up my guess is that your scores will recover. The double edged sword of Myfico membership is these alerts that happen all the time. Building your fico scores is a long term proposition so we have to fight the temptation to react or panic when these changes happen. Closeing this card was the right thing to do in the long term, whenever I close an account I take a hit short term, heck I have taken hits when I do all of the right things but as long as I am trending up month to month or quarter to quarter I feel like I am in good shape. There is a fico score section where those folks might be able to help a little more, they seem to know more of the secret magic than most.

Re: HELP!!! First Premier Closed, 39 point decrease

Chickenpotpie — Mon, 20 Mar 2017 14:12:29 GMT

As said, you're OK. Its UTL that is droping your score, not AAoA. Once you drop % of UTL and your scores will rebound.

What I used to do was knowing I would close a card, I would add one before I closed one. That helped keep drops to a minimum for UTL.

If the plan is to close but not replace the card, you're seeing the result if UTL is high.

The scores change quite a bit sometimes, with some very wild swings. You just have to find your rhythm