Be Me Later - Should I now close the account or leave open?

[dbinny]

New forum member - lot's of to look over here! 

I'm a long time but very occasional / modest PayPal user who has had 760+ credit score for many years now.

Recently (like some others I've read about), I saw option to use BML during a (very) small purchase and thought "why not"?... BAD Idea, and my fault for not paying attention. BML performed a hard pull on Equifax and is now a 2 year credit ding. (for a $3.00 purchase no less!) Live and learn.

I called BML this morning and complained anyway and I got the expected answer that I agreed to service terms and credit check when I signed up. BTW they were very professional and probably as helpful as they could be. They explained that they could only remove / modify / change fraudulent purchase issues and that no retraction of any sort was possible. I understand.

My question: Since I've already paid the price of a hard pull should I now follow the (general) credit score rule-of-thumb and LEAVE the account open even though I have no intention of using? My inclination is to close the account and be rid if it. I certainly do not want any further credit report dings. Will closing the account have ANY impact good or bad?

Base on my action of opening the stupid account in the first place you already know I am not a "credit wizard"... What would you advise?

BTW, I'm also checking / recalculating my income / debt ratio with this added credit $1200.00 line. 

I'm just really annoyed at myself because this inquiry and one other recent one from DirectTV (another HUGE annoyance) pushed me down into the "Very Good" score range. It may sound petty... but I want my "Excellent" rating back ASAP!

Thanks in advance for any advice you can provide!

[InvincibleSummer3]

I'd be inclined to leave it and not use it, unless there's an big annual fee. It could help your utilization, and the hit to your score based on the AAoA and inquiry is already done.

Closing's not really going to help your score, and leaving it open's not going to hurt you further if you don't use it.

 

[webhopper]

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@InvincibleSummer3 wrote:

I'd be inclined to leave it and not use it, unless there's an big annual fee. It could help your utilization, and the hit to your score based on the AAoA and inquiry is already done.

Closing's not really going to help your score, and leaving it open's not going to hurt you further if you don't use it.

 

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Hello and welcome to MyFico community forums! My advice would be to leave it open since you already took the hit. Also; the effects of inquiries only lasts for 12 months on your score; and the effect of new accounts only lasts for about 6 months. If you close the account there will be no harm either; it will continue to report for up to 10 years.

[CribDuchess]

Bill Me Later is a hidden tradeline - it does NOT report to the credit bureaus.  So the only score ding you will receive is for the INQ - whatever damage to your score is already done.  Because it does not report, it will not have an adverse effect on your AAoA, nor will it effect your UTIL.

[carlismycat]

Bill me later most certainly does report . I have BML and I can see that account on my credit report anytime I check my credit reports.
Also, the way it works with paypal, is when you sign into your paypal sccount during the payment process of whatever you are buying, paypal has a default payment method (you choose which by going to your settings) they use,.... for example, whether its bml or your checking sccount,or credit account. You can always click chsnge payment method to choose a diffetent payment such as your bml or a cc, or deibit card/ checking. So if you dont want to ude Bill me later ,but it shows up during the purchase, just click chsnge paent type and use whatever you are used to using instead. Just because you have thr sccount,doesn't mean you have to use it. I like to save mine and only use it like on a rainy day, or if I don't have the funds in my checking that mkment but know I can pay it right back, that month. ;-)

[CribDuchess]

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@carlismycat wrote:
Bill me later most certainly does report . I have BML and I can see that account on my credit report anytime I check my credit reports.
Also, the way it works with paypal, is when you sign into your paypal sccount during the payment process of whatever you are buying, paypal has a default payment method (you choose which by going to your settings) they use,.... for example, whether its bml or your checking sccount,or credit account. You can always click chsnge payment method to choose a diffetent payment such as your bml or a cc, or deibit card/ checking. So if you dont want to ude Bill me later ,but it shows up during the purchase, just click chsnge paent type and use whatever you are used to using instead. Just because you have thr sccount,doesn't mean you have to use it. I like to save mine and only use it like on a rainy day, or if I don't have the funds in my checking that mkment but know I can pay it right back, that month. ;-)

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I've had a BML account for over 4 years and it has never reported to the credit bureaus (I wish it would report).  The only time any reference to BML showed up on my credit reports is when I opened the account and took the initial HP.  They pulled EQ and the INQ for BML stayed on my EQ report for 2 years and then it fell off.

I've been reading these forums for almost 2 years and I don't recall anyone saying that BML actually was reporting on their credit reports.  However, BML will definitely show up on your reports if you have any derogatory action such as a late payment with your BML account.  Then they are more than happy to report to the credit bureaus.  Go figure. 

[lexandra90]

I too have had BML for about 3 months now and it doesn't show up on any of my 3 reports as well, I too wish it did report but its not too bad. I like the service

[carlismycat]

I sure wish I could share a screen shot of it. I am pretty sure I saw it on my credit report. I will have to go re-check,next time i view my credit report. That is strange.

[dzlqw4]

Wow,  I assumed there were laws that forced BML to report tradelines.  I opened a BML account that I never ended up using.  Now I am sure as !#@$!@ going to close it if it does not help build my credit.  Last year I opened a HELOC, without realizing it was going to count as a $30,000 maxed out credit card.  I guess I will never make another financial move with out researching the credit impact.

[blondy250]

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@carlismycat wrote:

I sure wish I could share a screen shot of it. I am pretty sure I saw it on my credit report. I will have to go re-check,next time i view my credit report. That is strange.

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Your wrong its a hidden tradeline.