Should I close this card?

Anonymous · ‎05-31-2009

I opened a HSBC credit card in December of 07 with a CL of 3,000. I used the card once, but have not used it since then. As a result, my CL has been reduced to $300. I have 14 other credit cards with a combined CL of well over $100,000. Here is my query: My credit history is exactly 6 years. If I close this card, how will it affect my credit scores? (currently at 771 and 763) I think it will actually boost my score since it will raise my length of credit history avg. And since the limit is so low (300) it will not make much of a difference in my credit usage (currently at 1%). What do you guys think, close or leave open?

smallfry · ‎05-31-2009

@Anonymous wrote:
I opened a HSBC credit card in December of 07 with a CL of 3,000. I used the card once, but have not used it since then. As a result, my CL has been reduced to $300. I have 14 other credit cards with a combined CL of well over $100,000. Here is my query: My credit history is exactly 6 years. If I close this card, how will it affect my credit scores? (currently at 771 and 763) I think it will actually boost my score since it will raise my length of credit history avg. And since the limit is so low (300) it will not make much of a difference in my credit usage (currently at 1%). What do you guys think, close or leave open?

Even if you close the account it still counts towards AAofA until it drops off your reports. That said I would shred it today. You don't need it.

Anonymous · ‎05-31-2009

Agreed i would close it..

FretlessMayhem · ‎05-31-2009

If you're not carrying a balance on the card, I would keep it open and let it smell socks.

You've already taken the new credit hit, might as well keep it open and let it help. However, HSBC likes closing accounts with no activity. I've seen many posts where they closed accounts for going 3 months without use.

Here we go again...

Anonymous · ‎05-31-2009

Thanks to everyone who has chimed in. I was under the impression that once I closed an account, the card would be eliminated from my credit history length (thus raising it). Apparently, I was mistaken. As someone already mentioned, I already took the credit hit so might as well leave it open.... I'll just burn it (literally).

smallfry · ‎06-01-2009

@Anonymous wrote:
Thanks to everyone who has chimed in. I was under the impression that once I closed an account, the card would be eliminated from my credit history length (thus raising it). Apparently, I was mistaken. As someone already mentioned, I already took the credit hit so might as well leave it open.... I'll just burn it (literally).

Under manual review closed by consumer looks better than closed by credit grantor. With 100K available it's not likely you can use the limit. You might be better off using your other cards showing usage there to keep them happy. Whether you took a new account hit or not the fact remains it is a useless credit card currently.