topic Re: Account closing concern in Credit Cards

Account closing concern

Jaylima91 — Sun, 20 Jul 2014 22:06:50 GMT

Hello everyone,

Does it look better on my credit profile if a lender closes a credit card due to inactivity instead of cardholder initiating the cancelation. In other words should I stop using the credit card and let the lender close the account or should I close it myself? Anyone knowledgeable in this aspect, please advise me. Thank you

Re: Account closing concern

Anonymous — Sun, 20 Jul 2014 22:09:42 GMT

@Jaylima91 wrote:
Hello everyone,

Does it look better on my credit profile if a lender closes a credit card due to inactivity instead of cardholder initiating the cancelation. In other words should I stop using the credit card and let the lender close the account or should I close it myself? Anyone knowledgeable in this aspect, please advise me. Thank you

Wow, that's the first time I've heard anyone express the thought that it might be better for issuer to close. The point is it will say "Closed by grantor" or some such phrase, leaving open the question whether it was closed for inactivity, for reward abuse etc.

Many prefer to close themselves to avoid this notation, but others, including me, think it doesn't really matter.

Re: Account closing concern

Jaylima91 — Sun, 20 Jul 2014 22:18:28 GMT

LOL I am a very curious person, so i ask questions and learn. I see, so it doesn't really matter whether i close or the lender does. At the same time it can have a negative effect on my profile if lender closes account since it can be for Abuse of Rewards. Other lenders wouldnt like that lol. Thank you

Re: Account closing concern

bdhu2001 — Sun, 20 Jul 2014 22:26:23 GMT

@Jaylima91 wrote:
Hello everyone,

Does it look better on my credit profile if a lender closes a credit card due to inactivity instead of cardholder initiating thecancelation. In other words should I stop using the credit card and let the lender close the account or should I close it myself? Anyone knowledgeable in this aspect, please advise me. Thank you

In my humble opinion, if you close it, it shows it didn't meet your need or you had no use for it. If the statement says closed by creditor or granter, it leaves interpretation open. It's the difference of seeing you quit a job and went to another job or seeing on your application that you were fired from your previous job. In both cases you're no longer on the job, but in the second instance the reviewer will interpret "you were fired" differently than " you were job hoping."

Re: Account closing concern

Anonymous — Sun, 20 Jul 2014 22:26:37 GMT

Well, closing can be for any reason, and that point is that it is not made clear. So people who worry are concerned it will raise questions on manual review. But IMO it's so common (particularly for non-use) that reviewers probably don't take note.

Re: Account closing concern

Jaylima91 — Sun, 20 Jul 2014 22:28:32 GMT

Thank you both for your valued opinions.

Re: Account closing concern

Anonymous — Sun, 20 Jul 2014 22:29:39 GMT

@bdhu2001 wrote:
@Jaylima91 wrote:
Hello everyone,

Does it look better on my credit profile if a lender closes a credit card due to inactivity instead of cardholder initiating thecancelation. In other words should I stop using the credit card and let the lender close the account or should I close it myself? Anyone knowledgeable in this aspect, please advise me. Thank you
In my humble opinion, if you close it, it shows it didn't meet your need or you had no use for it. If the statement says closed by creditor or granter, it leaves interpretation open. It's the difference of seeing you quit a job and went to another job or seeing on your application that you were fired from your previous job. In both cases you're no longer on the job, but in the second instance the reviewer will interpret "you were fired" differently than " you were job hoping."

Yes. While still maintaining that it probably doesn't matter, I'm fine with the view that "You may as well close it yourself to avoid such questions". As I said in my first post, the OP was the first to suggest that it could be better for an issuer to close.

Re: Account closing concern

bdhu2001 — Sun, 20 Jul 2014 22:37:40 GMT

@Anonymous wrote:
@bdhu2001 wrote:
@Jaylima91 wrote:
Hello everyone,

Does it look better on my credit profile if a lender closes a credit card due to inactivity instead of cardholder initiatingthecancelation. In other words should I stop using the credit card and let the lender close the account or should I close it myself? Anyone knowledgeable in this aspect, please advise me. Thank you
In my humble opinion, if you close it, it shows it didn't meet your need or you had no use for it. If the statement says closed by creditor or granter, it leaves interpretation open. It's the difference of seeing you quit a job and went to another job or seeing on your application that you were fired from your previous job. In both cases you're no longer on the job, but in the second instance the reviewer will interpret "you were fired" differently than " you were job hoping."
Yes. While still maintaining that it probably doesn't matter, I'm fine with the view that "You may as well close it yourself to avoid such questions". As I said in my first post, the OP was the first to suggest that it could be better for an issuer to close.

I agree that it probably doesn't matter. It's just reading this forum with so many people giving stories about what people from the same company said about CLI or application, indicates that there isn't consistency so why add an iffy line to your credit.