topic Re: Took a 19 point hit from Disco Account Closure in Rebuilding Your Credit

Took a 19 point hit from Disco Account Closure

satio — Wed, 26 Jun 2019 03:22:47 GMT

I have a very long credit history, 32+ years. I've been working on a recovery from financial struggles 5 years ago. I have 2 charge offs from Cap1 still held by Cap1 that I settled in May but still waiting on them to be updated.

I only have (2) active CC accounts, one with USAA and one with Discover, well change that to had, as after working to bring both these accounts to zero several months ago, Discover reviewed my TU report first week of June which still showed the unpaid charge offs and decided to close my account.

Disco reports by the 24th of the month so that hit today.... -19 points. Ouch. For EX (my lowest of the three CRA) took me from 591 to 572

Still waiting for my charge offs to show as paid. Cap1 has been reporting FP on the 5th of each month but had no reporting for June. Others have said to wait 2 cycles so hopefully these items will finally show 0 by July 5th.

I have hesitated opening any additional CC accounts hoping for a point uplift from the Cap1 settlement posting but unsure what uplift that will actually represent. I may just need to get some secured accounts as with scores <600 I don't expect approval for anything. I've checked the prequal links and been patiently waiting the result of the CO settlements.

Any suggestions?

What do others suggest

Re: Took a 19 point hit from Disco Account Closure

Jnbmom — Wed, 26 Jun 2019 03:29:49 GMT

What was your credit line with Discover? The only reason I can see a point loss is if when you lost your limit with discover, it brought your utilization (higher) over a certain threshold.

You would not lose any points for an account being closed, something else changed and I am just guessing your utilization?

Re: Took a 19 point hit from Disco Account Closure

gdale6 — Wed, 26 Jun 2019 03:42:31 GMT

@Jnbmom wrote:
What was your credit line with Discover? The only reason I can see a point loss is if when you lost your limit with discover, it brought your utilization (higher) over a certain threshold.

You would not lose any points for an account being closed, something else changed and I am just guessing your utilization?

Actually since he only had 2 open, now only one, yes he could lose points for its closure as one typically gains points for the first 3 cards open. Utilization also may play a part.

Re: Took a 19 point hit from Disco Account Closure

satio — Wed, 26 Jun 2019 04:07:08 GMT

@gdale6 wrote:
@Jnbmom wrote:
What was your credit line with Discover? The only reason I can see a point loss is if when you lost your limit with discover, it brought your utilization (higher) over a certain threshold.

You would not lose any points for an account being closed, something else changed and I am just guessing your utilization?
Actually since he only had 2 open, now only one, yes he could lose points for its closure as one typically gains points for the first 3 cards open. Utilization also may play a part.

USAA CL 2400

DISCO CL 4800

I had paid both of these to zero since December and kept them that way till I read AZEO (all zero except one) so started leaving a little on USAA.

So before before 24th June, 32 / 7200 = 0.44 %

After June 24th, 32/2400 = 1.33%

That is the only change I can find on my report. I'm not surprised since now I have only a single open account. I have a mortgage in my history but I sold that home and so it is also a closed account.

I have intentions on getting a small loan (probably from USAA or my Credit Union) secured by CD or other funds on deposit and was intending on opening a 3rd CC account. Now I will need that and 2 CC accounts....

Just unsure if I should wait to try and acquire CC accounts that I actually want long term (will need higher scores though I think for that to succeed) or just get a couple of secured CC accounts, also debating what lenders.

I know I can likely get a second CC account from USAA or also the same from my Credit Union perhaps without a hard pull.

Re: Took a 19 point hit from Disco Account Closure

Jnbmom — Wed, 26 Jun 2019 04:17:56 GMT

@gdale6 wrote:
@Jnbmom wrote:
What was your credit line with Discover? The only reason I can see a point loss is if when you lost your limit with discover, it brought your utilization (higher) over a certain threshold.

You would not lose any points for an account being closed, something else changed and I am just guessing your utilization?
Actually since he only had 2 open, now only one, yes he could lose points for its closure as one typically gains points for the first 3 cards open. Utilization also may play a part.

@gdale6

Ok gotcha, learn something new everyday

Funny my DD had opened a discover card and then was added as an "au" on one of my accounts, she decided she didn't want that so I removed her and her score stayed the same??