topic Re: Closing oldest card. Effects on score help in Credit Cards

Closing oldest card. Effects on score help

taxi818 — Thu, 23 Oct 2014 13:47:46 GMT

Hello all. My oldest card is 1 year old ams of November 1st. Td bank extra rewRds. Well this card is good for first 6 months. But after. It drops to 1% for everything. Plus it has a 29 AF. I really want to get rid of it but not sure. Also I have checking account and savings with them. And they have minimum balance requirements for my accounts. Every time I drop below 1500. They charge a 15 maintenance. Malso on the savings. I want out. But am afraid what will happen to my score. I know people will say it will stay on report 10 years true. And still help AA of A. My next oldest is cap 1. December 1st 1 year. The problem. When I went to simulator. It said I will lose 27 points if I close. Confused as what yo do now. So sick of TD

Re: Closing oldest card. Effects on score help

Simply827 — Thu, 23 Oct 2014 13:55:17 GMT

Won't hurt your score in terms of AAoA. Might hurt your score in terms of utilization if you carry balances. Feel free to close.

Re: Closing oldest card. Effects on score help

FinStar — Thu, 23 Oct 2014 13:57:49 GMT

@taxi818 wrote:
Hello all. My oldest card is 1 year old ams of November 1st. Td bank extra rewRds. Well this card is good for first 6 months. But after. It drops to 1% for everything. Plus it has a 29 AF. I really want to get rid of it but not sure. Also I have checking account and savings with them. And they have minimum balance requirements for my accounts. Every time I drop below 1500. They charge a 15 maintenance. Malso on the savings. I want out. But am afraid what will happen to my score. I know people will say it will stay on report 10 years true. And still help AA of A. My next oldest is cap 1. December 1st 1 year. The problem. When I went to simulator. It said I will lose 27 points if I close. Confused as what yo do now. So sick of TD

You already know that CK (or whichever simulator you are using) is not reliable for the true effects on FICO scoring - simply used as a guide. Your AAoA would not be impacted but you will have a lost tradeline which would factor in any utilization that would be felt during the closing of such account. Keep in mind, FICO scoring is just a snapshot in time which would eventually recover. Plus, you don't really have a "thin" file to be really concerned. If the CC has an AF and you no longer see a need, then just close it and move forward.

Out of curiosity, since your file seems to be kinda "newish", what is the big concern on the score? Are you applying for a mortgage or auto-fiancing anytime soon? If not, then I wouldn't worry about it.

You have said it before to others, so let's use the same advice, no need to panic or be overly concerned.

Re: Closing oldest card. Effects on score help

taxi818 — Thu, 23 Oct 2014 14:01:45 GMT

Yes. A car in 6 months. But ok. Will go today to bank and close it. Thanks.

Re: Closing oldest card. Effects on score help

Anonymous — Thu, 23 Oct 2014 20:59:45 GMT

@taxi818 wrote:
Yes. A car in 6 months. But ok. Will go today to bank and close it. Thanks.

Car Financing has gotten a TON easier in the last two years.

Got a 0% for 72mos with Ally.

Myself as Primary with EX FICO 662, Wife as Secondary with EX FICO 690 at time of signing.

Re: Closing oldest card. Effects on score help

taxi818 — Thu, 23 Oct 2014 21:54:04 GMT

@Anonymous wrote:
@taxi818 wrote:
Yes. A car in 6 months. But ok. Will go today to bank and close it. Thanks.
Car Financing has gotten a TON easier in the last two years.

Got a 0% for 72mos with Ally.
Myself as Primary with EX FICO 662, Wife as Secondary with EX FICO 690 at time of signing.

Is that so?. what do you mean 0 percent. ??? Apr. also did you put down payment on it. as i was thinking of using credit card to do that. as i want high end vehicle . anyway. not highjacking my own thread i got offer from cap one today in mail pre approved up to 35k. on new vehicle no money down. however it is for any toyota which i don;t want. im looking at Benzo...any advice is welcomed. thats why in the garden. thanks.