topic Re: Merchant closing in Credit Cards

Merchant closing

Anonymous — Sun, 16 Aug 2009 07:21:07 GMT

What is worse, having your CR say closed by merchant (the only reason being for inactivity) or closed by consumer? Or does it matter at all?

Message Edited by jdp2134 on 08-16-2009 12:21 AM

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 13:50:33 GMT

The FICO scoring model does not care who closes the account the merchant or consumer. To avoid any score hit with the closing make sure the balance of the TL is zero and the closing of the TL does not significantly raise your overall utilization percentage of all revolving TLs.

Message Edited by plasticman on 08-16-2009 06:50 AM

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 14:33:41 GMT

so since it doesnt matter i will just keep them open except for orchard bank which wont grow and i have a AF. Ty plasticman

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 15:07:54 GMT

Please remember if you do close a TL it will only remain on you credit report for 10 years from the date of closing. In 10 years this may affect your AAoA. If that is not a concern of yours then no worries.

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 18:48:19 GMT

Is this speculation or has it already happened? If so by whom and how long was the account inactive?

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 21:42:14 GMT

just speculation

Re: Merchant closing

Anonymous — Sun, 16 Aug 2009 21:48:52 GMT

@Anonymous wrote:
just speculation

Since you are just speculating:

1) FICO doesn't care who closed the card. Scorewise it all comes out the same. So many cards are being closed by grantor these days it is highly unlikely that anyone in going to attach any weight to it in an MR either. At least not if the account is not reporting any recent lates or overlimits that would have prompted AA.

2) Use your non-store cards at least once a quarter. That should keep the accounts from becoming dormant and avoid undesired closure for disuse.