All Major Accounts Closed -- Apply for More?

Anonymous · ‎08-16-2007

I went on a snip-n-close binge exactly 10 years ago... From what I've been reading on the boards, this will affect me right about now (zero lates, all in good standing). I have about 5 retail store cards, also in good standing, but only equalling about $4000, total. I'm paying off my Chase account (CL is $16,200), which is closed and in good standing (through a credit counseling company). It seems as though I should be thinking about applying for another card once this one is PIF (about Feb. '08). I guess my question is: with all the 10-year-olds dropping off, and my total CL dropping so drastically, how harshly will this affect my score and how long should I wait to apply for another major card?

Anonymous · ‎08-16-2007

Accounts in good standing stay on for AT LEAST 10 years... So I wouldn't be sweating.

However, you do need to re-build after a Consumer Credit Counseling relationship. New accounts in good standing after the relationship has ended are an important component.

Rob

Anonymous · ‎08-16-2007

Hey, thanks! That's good news... I just assumed it was a definite loss of history after 10 years. Btw, just because old accounts close, can't the CRAs still see that you have history dating back however many years and take that into consideration?

SpecFile · ‎08-16-2007

Ok I must be confused. How is your total CL dropping as these old closed accounts fall off. I thought that once an account was closed, it no longer reported a CL because there is in fact no account open to have a CL. Am I mssing something?

MidnightVoice · ‎08-16-2007

SpecFile wrote:
Ok I must be confused. How is your total CL dropping as these old closed accounts fall off. I thought that once an account was closed, it no longer reported a CL because there is in fact no account open to have a CL. Am I mssing something?

It is not CL, it is age. When all those 10 year old accounts drop off, you suddenly become very young again. And if you have opened zero accounts in the interim, you are suddenly virginial once more

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

SpecFile · ‎08-16-2007

Ah, now that makes sense! Thank you.

smallfry · ‎08-16-2007

@Anonymous wrote:
Hey, thanks! That's good news... I just assumed it was a definite loss of history after 10 years. Btw, just because old accounts close, can't the CRAs still see that you have history dating back however many years and take that into consideration?

Consideration? Remember one thing. They are not your friend.

Anonymous · ‎08-17-2007

My oldest accounts will be removed from my history this year and, since until about a year and a half ago (when my Chase account - $16,200 - was closed and I began paying through a mediator), I had a total CL of approximately $22,000. I pulled one score, TU, only 6 months ago and that was 733, so, now that I think about it, the drop in limit must not have been too horrible. I have no idea what my score was before. I've been making a year and a half's worth of pristine payments on that card. So maybe it won't be so bad. I'll be buying a car in the next year, or so. Hopefully I'll qualify for good rates by then.