topic Re: Closed Accounts in General Credit Topics

Closed Accounts

Flooded_Genesis — Thu, 21 Oct 2021 00:20:00 GMT

So, I recently closed five low limit cc's within a the last 30 days. The oldest accounts about 3 years old (USAA Secured Visa $250), however, I have now started seeing a CS drop as they are being reported to the CRA's. In the past two weeks, I've seen a drop of about 20-30 points and it may drop more depending on when the last cc is reported which the USAA previously mentioned.

How long does it take for scores to bounce back from something like this? I thought it would have been a good idea initally to close all of them at the same time rather than stagger them. Take the hit one time and be done with it, rather than see a hit every other month or so... If that makes sense!

I would love some feedback on this because I think I may have screwed up my chances at getting a home loan...

Re: Closed Accounts

rostrow416 — Thu, 21 Oct 2021 00:38:15 GMT

Is the drop your actual FICO score or is a VantageScore? I know VantageScore usually dropped when I closed accounts since they get taken out of the scoring system, but my FICO scores never were affected like that since the accounts remain on record for 10 years

Re: Closed Accounts

Flooded_Genesis — Thu, 21 Oct 2021 00:58:06 GMT

I've been seeing my FICO drop. I received another notification today of a 6 point drop on my EQ CR.

Re: Closed Accounts

NYC_Fella — Thu, 21 Oct 2021 01:21:17 GMT

@Flooded_Genesis wrote:
I've been seeing my FICO drop. I received another notification today of a 6 point drop on my EQ CR.

Unless the closed accounts had large CLs in relation to your total available credit, there should be little to no effect. Other factors are likely affecting your scores.

Re: Closed Accounts

FireMedic1 — Thu, 21 Oct 2021 08:26:06 GMT

How many cards do you have left and whats your aggregate util % now?

Re: Closed Accounts

SouthJamaica — Thu, 21 Oct 2021 14:11:02 GMT

@Flooded_Genesis wrote:
So, I recently closed five low limit cc's within a the last 30 days. The oldest accounts about 3 years old (USAA Secured Visa $250), however, I have now started seeing a CS drop as they are being reported to the CRA's. In the past two weeks, I've seen a drop of about 20-30 points and it may drop more depending on when the last cc is reported which the USAA previously mentioned.

How long does it take for scores to bounce back from something like this? I thought it would have been a good idea initally to close all of them at the same time rather than stagger them. Take the hit one time and be done with it, rather than see a hit every other month or so... If that makes sense!

I would love some feedback on this because I think I may have screwed up my chances at getting a home loan...

Possibly you're losing points for (a) increased utilization percentage, and/or (b) lower percentage of zero balance accounts. If you get your utilization down, and keep as many accounts as possible reporting zero balances (except that you need one to report a small balance each month), your scores should pick up right away.

Re: Closed Accounts

Flooded_Genesis — Thu, 21 Oct 2021 21:26:21 GMT

Even with closing those accounts my UTL was still at or around 16% and I only have two cards right now with balances which makes up the 16%. I have no derogs or inquiries and I can't seem to find why its' dropping.

Re: Closed Accounts

Flooded_Genesis — Thu, 21 Oct 2021 21:27:33 GMT

I still have 12 cards with a UTL % of 16. Prior to closing those accounts I was at 23% but I made some payments prior to closing to get my UTL under 20%.

Re: Closed Accounts

FireMedic1 — Thu, 21 Oct 2021 22:32:17 GMT

When you closed those cards. The credit limit on them combined was part of your overall credit line. Once closed they no longer are equated into your overall util %'s. So your util % may have gone up by losing the total CL's amount you closed and scores went down. So get under <8% reporting and you may get those points back.