topic Re: Thinking about closing an account in Rebuilding Your Credit

Thinking about closing an account

Anonymous — Fri, 03 May 2019 22:22:15 GMT

Right now my credit is fairly fresh and new; I opened 4 account the past couple months with one of them being an experiment.

Fingerhut: Roughly a year and 3 months

Discover: 4 Months

Capital One: 4 Months

New Car: 2 Months

Hutton Chase: 4 Months

I opened Hutton Chase because there was a $1500 approval and I wanted to see if Fingerhut or Capital One will see a lender is trusting me with that much cash and hopefully increase my limit. Fingerhut ended up taking the bait in April going from $950 to $1500 and matched the credit limit. So now I really have no need for this type of department store card, will I majorly take a hit on my credit by closing the account paid in full? And if I do end up closing should I apply for a secured card such as CitiBank or just relax and let everything age

Re: Thinking about closing an account

Anonymous — Sat, 04 May 2019 02:55:26 GMT

You’ll only take a hit if you’re carrying balances on other cards, as your total credit will decrease, increasing utilization. If your UTI is very low, you’ll take little to no hit. Age of accounts won’t be affected either - closed accounts stay on and factor in for up to 10 years after closure.

Re: Thinking about closing an account

dragontears — Sat, 04 May 2019 03:18:32 GMT

My advice is if the account is not costing you anything keep it open for a year.
Relax and let your current accounts age and you might be in a position to skip secure cards

Re: Thinking about closing an account

Anonymous — Sat, 04 May 2019 03:22:50 GMT

@dragontears wrote:
My advice is if the account is not costing you anything keep it open for a year.
Relax and let your current accounts age and you might be in a position to skip secure cards

After I pay off the $60, they'll charge $20 per month to keep the Hutton Chase account open. That's just money down the drain to be used toward something else.

Re: Thinking about closing an account

dragontears — Sat, 04 May 2019 03:53:34 GMT

If they are charging you $20/month close it as soon as you can i.e. once it is paid off. Your other accounts are sufficient for early stage credit building (3 revolving and a instalment), use them responsibly, let them age then start going for cards that suits your spending rather than secure or crappy cards you have no long term use for

Re: Thinking about closing an account

800FICOGoal — Sat, 04 May 2019 09:19:18 GMT

@Anonymous wrote:

Hutton Chase: 4 Months

I opened Hutton Chase because....

Do they report to all three CRA's?

Re: Thinking about closing an account

Anonymous — Sat, 04 May 2019 15:51:47 GMT

@800FICOGoal wrote:
@Anonymous wrote:

Hutton Chase: 4 Months

I opened Hutton Chase because....
Do they report to all three CRA's?

It's only being reported to TU and EQ, one of the other reasons why I want to close it and possibly replace it with another secured card that reports to call 3 and relax for a year then apply for my final card through my credit union.