Closing rebuilders

[jeffery581]

I have been rebuilding for a couple years now. Still working on GW'ing the baddies (miracles do happen right?). I want to close some rebuilder and high fee cards. This is what I am thinking. My concern is that having an account open for such a short time. Is that ok? Does it look odd?  Especially in the rebuilding phase. Thank you for your time and opinions/advise!! My score has gone up over 150 points from 2 years ago. Once a payment is updated to CRB my score should be around 665 ish. I am gardening and letting inquiries fall off the rest of this year. AAof A is 2-4 years, depending on who I read. I am affraid it will come down as paid collections fall off. Oldest paid collection is 6.5 ywears old.

Close Fingerhut in 3 months, at one year old mark. The quality and price are not right for me anymore. Plus they do not report to everybody.

Close Credit One in May, after 24 months open. They have raise my limit several times and I haven't had any problems but i think I am beyond the fees now.

Close Secured TInker Federal Credit Union Visa in 7 months, having 24 months history.  Its only 200 and to make a larger limit they would have to pull credit again. Or Is it worth a hard pull to put 3000 on it to help grow other cards? I am thinking close it and save the inquiry for unsecured card in another year.

Then there is hsbc. I have a 400 HSBC Discover that isn't going anywhere, has no rewards, and an annual fee. Should I close this as well after 2 years history?

I am ready for Primeville but its a LONG road. Thanks for all your advise. Am I rushing it to fast?

[john398]

I think its worth having the credit union pull again

[Anonymous]

I am glad you asked this question because I want to close my Cap One Mastercard at its one year birthday and hopefully get a prime Mastercard.  I have been wondering, just like you, if there are any repercussions to fear in any way.  I KNOW that the Cap One will continue to report for 10 years but, just wondering if there's any thing else I had not thought about? 

[bichonmom]

I have been told by more than one loan officer that once an account is closed, you don't get the benefit of continued history on the account. I'm not quite sure how to describe it.

I had 2 secured loans that I PIF and closed after a year. I thought that was the point... to pay them off, right? Well, several loan officers have said that it would be better for my credit situation if I had NOT closed them and still had a balance that I was paying. Presumably this is because I have such a short credit history and thin file. If I had a CC w/several years on it, then it probably wouldn't matter if an old loan was PIF. But they look at OPEN accounts, so if it's closed, it doesn't show them that you're paying on time for those loans (or CCs). For some reason, they don't seem to care that I actually paid them off. They said it would be better if I hadn't. Again, this make ZERO sense to me. But I thought I'd throw it out there because several loan officers from different banks/CCCs have told me this.

[seattletravels]

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@bichonmom wrote:

I have been told by more than one loan officer that once an account is closed, you don't get the benefit of continued history on the account. I'm not quite sure how to describe it.

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Ok - I actually had a thought on this the other day because I noticed on CreditKarma it was showing my AAoA at just under 2 years.  Well that can't be right - every credit report I've seen has me over 5 years.  I'm wondering if Fico scores look at AAoA but FAKO and some lenders have average age of open accounts built into their internal scoring methods.

[MarineVietVet]

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@seattletravels wrote:

 

Ok - I actually had a thought on this the other day because I noticed on CreditKarma it was showing my AAoA at just under 2 years.  Well that can't be right - every credit report I've seen has me over 5 years.  I'm wondering if Fico scores look at AAoA but FAKO and some lenders have average age of open accounts built into their internal scoring methods.

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That's because CK only factors open accounts in your AAoA.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[seattletravels]

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@MarineVietVet wrote:

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@seattletravels wrote:

 

Ok - I actually had a thought on this the other day because I noticed on CreditKarma it was showing my AAoA at just under 2 years.  Well that can't be right - every credit report I've seen has me over 5 years.  I'm wondering if Fico scores look at AAoA but FAKO and some lenders have average age of open accounts built into their internal scoring methods.

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That's because CK only factors open accounts in your AAoA.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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That's what I figured.  Thanks, Marine.

[jeffery581]

+1. Anybody?

[Jesster]

I think the only real concern to have is the effect on untilization, unless you have a card coming in to replace the closed account. I'd personally find a card to replace it with (of equal or greater credit limit), and close after being approved. You'll want to maintain or improve utilization. But, of course, I am no expert...