Closing an account question

[zsepthenne]

Sorry if this has been addressed before, but does it matter who closes an account? For instance, I have a shopping cart aquired Express I don't use and likely never will. I don't need it any longer for utilization, so I'd rather just close it. So is there any difference between letting a card close for inactivity, or me initiating the closure? Like from an underwriters standpoint, does one look worse than another? Or is it only bad if an account is shut for other reasons?

[MaxSaver]

Honestly, I'd recommend not closing it especially if it is an old card. Use it like once every quarter or something for a tiny purchase. If you close it will reduce the average age of your account (assuming it is an old card which im guessing it is) and that will ding your credit score.

If you barely charge anything and pay if off, it will show you can manage multiple accounts better and thats a plus for your score.

[gdale6]

It doesnt matter who closes the account as long as it ends up closed in good standing. I do however not recommend closing till it reports at least 24 months of history, this gives you the best FICO on its individuality. Cards closed will remain on file for up to 10 yrs post close.

[zsepthenne]

Ok, thanks for the info. I've only had the card since the end of October so I suppose I'll buy something really small and keep it. I just feel like I've got a lot of cards to manage suddenly lol.

[awiser]

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@zsepthenne wrote:

Ok, thanks for the info. I've only had the card since the end of October so I suppose I'll buy something really small and keep it. I just feel like I've got a lot of cards to manage suddenly lol.

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Most people around here probably disagree with me on this, but making small purchases on a card that you've already said you don't want and don't have a use for just to keep it open isn't a great idea.  IMO, each card that I have has to serve a purpose.  Until last year around this time, I was addicted to applying for just about every card I could get my hands on and it wasn't long before I finally realized it wasn't smart, either.  I've closed five cards over the past few months and my scores haven't dropped - CLI's helped with utilization while I pay down cards with balances.  As you can see from my siggy, I still have a few cards, but over the course of the next year I hope to be down to about five cards - each serving a purpose.  Regardless, while looking at short-term plans and goals, you should consider the big picture and where you want your credit to be in the long run.  If a card doesn't serve a purpose, close it.

[maiden_girl]

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@awiser wrote:

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@zsepthenne wrote:

Ok, thanks for the info. I've only had the card since the end of October so I suppose I'll buy something really small and keep it. I just feel like I've got a lot of cards to manage suddenly lol.

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Most people around here probably disagree with me on this, but making small purchases on a card that you've already said you don't want and don't have a use for just to keep it open isn't a great idea.  IMO, each card that I have has to serve a purpose.  Until last year around this time, I was addicted to applying for just about every card I could get my hands on and it wasn't long before I finally realized it wasn't smart, either.  I've closed five cards over the past few months and my scores haven't dropped - CLI's helped with utilization while I pay down cards with balances.  As you can see from my siggy, I still have a few cards, but over the course of the next year I hope to be down to about five cards - each serving a purpose.  Regardless, while looking at short-term plans and goals, you should consider the big picture and where you want your credit to be in the long run.  If a card doesn't serve a purpose, close it.

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I agree. I recently closed my Macys card. I hadn't used the card since 2012! I mean, I don't shop in Macys and I wasn't interested in keeping it open. It's a store card that served no purpose any longer and had a low CL. It was one of my oldest tradelines but not the oldest one. I have since opened up other cards so it should level itself. If you don't use it, close it.

[zsepthenne]

Yeah if it wasn't a store card I'd feel more inclined to keep it around. But I'd rather concentrate on growing and monitoring my other cards.

Just to clarify, dropping it won't affect my AAoA, right?

[awiser]

Right, it will not affect your AAoA because it will stay on your reports for 7-10 years.

[maiden_girl]

It will only affect your UTL if you're carrying a balance because you won't have that available credit to help lower your percentage. It won't affect your AAoA until 10 years from closure when it stops reporting on your credit report.

[zsepthenne]

Thanks for the advice from everyone :-D Had I listened to those in the garden about not becoming tempted by too many shopping cart cards I wouldn't even have this problem! Ehh live and learn. My utilization is maybe 2% and I don't see it rising above 10% at any point soon so I'm going to close it.