EXPERT ADVICE PLEASE

[Anonymous]

I want to close the little Fingerhut account I have...$300. I'll never use it and I have no idea why I got it. They havent reported for 10 months or so.   How will this affect me? My accounts list is in my signature in addition to car loan $19,000 balance and student loan $47,000

I also have American Laser Skincare card...I've never used it and the company supposedly went bankrupt.  Should I just leave it there? Will it hurt/help? Limit is $1500

I closed Jared ($1500 limit) about a month ago and saw a decrease in my CR scores. No change in FICO score though

[FinStar]

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@Anonymous wrote:

I want to close the little Fingerhut account I have...$300. I'll never use it and I have no idea why I got it. They havent reported for 10 months or so.   How will this affect me? My accounts list is in my signature in addition to car loan $19,000 balance and student loan $47,000

I also have American Laser Skincare card...I've never used it and the company supposedly went bankrupt.  Should I just leave it there? Will it hurt/help? Limit is $1500

I closed Jared ($1500 limit) about a month ago and saw a decrease in my CR scores. No change in FICO score though

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Honestly, I would close both.  So, any reason why you even got those cards?  Was this merely due to impulse?

Now, depedning on your overall credit profile and utilization, you may take a tiny hit since you'll lose about $1,800 in available credit.  Yet, they will remain on your CRs as positive tradelines for 10+ years. 

If you are unable to locate the lender who services your American Laser Skincare card (not sure how it goes through), then it doesn't hurt to leave it as is.

[Anonymous]

ALS I was going to use before they went BK. Jared I had intentions of growing the line of credit and using it for a large purchase but I changed my mind 14 months after having the card. Fingerhut--I honestly have no idea what I was thinking. I've never ordered from them before or after having the card.

Are you saying it wouldn't hurt to keep ALS open? They haven't reported in about 10 months or so. Will it hurt or help keep for cushion?

I just received more than $1800 in CLIs in the last few weeks so I think they would equal out, wouldn't they?

Thank you for your help. I'm trying to take the right steps without regrets.

[Anonymous]

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@Anonymous wrote:
ALS I was going to use before they went BK. Jared I had intentions of growing the line of credit and using it for a large purchase but I changed my mind 14 months after having the card. Fingerhut--I honestly have no idea what I was thinking. I've never ordered from them before or after having the card.

Are you saying it wouldn't hurt to keep ALS open? They haven't reported in about 10 months or so. Will it hurt or help keep for cushion?

I just received more than $1800 in CLIs in the last few weeks so I think they would equal out, wouldn't they?

Thank you for your help. I'm trying to take the right steps without regrets.

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No what FinStar is saying is to close out the ALS card as well.  You have plenty of other credit and closing those two accounts won't hurt you one bit.  If cards aren't reporting they do you no good and even if they were you don't need them.

[Anonymous]

Okay! Thank you for your help. I guess what I meant to ask without asking is the ASL hurting me because it's an open account that isn't reporting?

[FinStar]

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@Anonymous wrote:
Okay! Thank you for your help. I guess what I meant to ask without asking is the ASL hurting me because it's an open account that isn't reporting?

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The ASL open account isn't really hurting at all.  It's simply deadweight (i.e. inactive/not reporting) on the CRs but still accounts for your AAoA.

[Anonymous]

What will it do to my average credit limit? If it's opened it will count right? What about if it's closed? Does it still count toward that it is it excluded because it's a closed account? I think this is going to be the deciding factor

[pizza1]

it only hurts your scores if your utilization is effected by closing them. Your AAOA won't be effected until years down the road, because those closed acts stay on your reports as "positive" for 10 yrs from the date you closed them. by then, your other cards will have caught up, and you probably won't see much change 10 yrs from now.

[Anonymous]

Oh yes!! I forgot...for  a moment..some of these cards I opened for that reason.  I am at a very high  13% UTIL....I am working to bring that down to 2%..that used to be my limit..I'm reinforcing it once again. ty pizza for reminding me.

[pizza1]

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@Anonymous wrote:

Oh yes!! I forgot...for  a moment..some of these cards I opened for that reason.  I am at a very high  13% UTIL....I am working to bring that down to 2%..that used to be my limit..I'm reinforcing it once again. ty pizza for reminding me.

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no problem, get your util down first, then close them. then it wont be an issue