cancel
Showing results for 
Search instead for 
Did you mean: 

CLOSING ACCOUNTS, GOOD OR BAD?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Frequent Contributor

CLOSING ACCOUNTS, GOOD OR BAD?

Ok, here is my dilemma.

I've built my scores from mid 5's to almost 7's across the board in 4 months (need to get EX over the hump). The beginning of rebuilding my profile I opened up a lot of accounts just because I thought that was gonna help, it didn't. The majority of the accounts are store cards that I won't ever use. I have a very thin and new profile. AAoA about 1.5 years and that's only because of a 11 year old Kay's card still reporting.
So, I want to close some of the store cards I will never use. They are only months old. Will this look bad on my part to a lender when they pull my report?
FICO8
5/17 EX 550 EQ 560 TU 555
11/17 EX 722 EQ 720 TU 746
Penfed promise 9K- Penfed PCR 1k - NFCU Cash Rewards 500 -NFCU CLOC 7.5k - NFCU Auto loan 22K - Walmart 10k- Dicks Rewards 10k- Credit One 500- PayPal2% MC 2K- Stash Hotel’s Visa 7.9K -Cheapo Air Visa 2.4k - Williams Sonoma 2.6k - Boscovs 4k -SPGV 4.5K - Amazon 10K- VS(FTW)1k - Fingerhut 1.3K- BP VISA 1K - Indigo 300
WAY TOO MANY INQ's
NO. MORE. APPS. NEED. GARDEN
Message 1 of 5
4 REPLIES 4
Super Contributor

Re: CLOSING ACCOUNTS, GOOD OR BAD?

I don't think it's ever a bad idea to close cards that you don't or won't use, unless they are very old and positively impacting your AAoA. 

Message 2 of 5
Frequent Contributor

Re: CLOSING ACCOUNTS, GOOD OR BAD?

Once closed would they still be viewed as "recently opened accounts" by lenders? 

FICO8
5/17 EX 550 EQ 560 TU 555
11/17 EX 722 EQ 720 TU 746
Penfed promise 9K- Penfed PCR 1k - NFCU Cash Rewards 500 -NFCU CLOC 7.5k - NFCU Auto loan 22K - Walmart 10k- Dicks Rewards 10k- Credit One 500- PayPal2% MC 2K- Stash Hotel’s Visa 7.9K -Cheapo Air Visa 2.4k - Williams Sonoma 2.6k - Boscovs 4k -SPGV 4.5K - Amazon 10K- VS(FTW)1k - Fingerhut 1.3K- BP VISA 1K - Indigo 300
WAY TOO MANY INQ's
NO. MORE. APPS. NEED. GARDEN
Message 3 of 5
Super Contributor

Re: CLOSING ACCOUNTS, GOOD OR BAD?


@Chefduane wrote:

Once closed would they still be viewed as "recently opened accounts" by lenders? 


Yes.  Closing them doesn't stop them from being counted as accounts you opened recently.

 

The only small addition I'd give to the advice of BBS is to avoid closing cards if the closures would bring you to less than five open cards.  Having a solid five cards may have advantages in some models (e.g. the mortgage models) where you want to show exactly one card with a positive balance and several other open accounts with a $0 balance.  That's harder to do when you have a smaller number of open cards.

 

Otherwise there is no problem with closing junky cards you don't like, if as BBS says they were opened recently.

Message 4 of 5
Frequent Contributor

Re: CLOSING ACCOUNTS, GOOD OR BAD?

Thank you for the info. Much appreciated! 

FICO8
5/17 EX 550 EQ 560 TU 555
11/17 EX 722 EQ 720 TU 746
Penfed promise 9K- Penfed PCR 1k - NFCU Cash Rewards 500 -NFCU CLOC 7.5k - NFCU Auto loan 22K - Walmart 10k- Dicks Rewards 10k- Credit One 500- PayPal2% MC 2K- Stash Hotel’s Visa 7.9K -Cheapo Air Visa 2.4k - Williams Sonoma 2.6k - Boscovs 4k -SPGV 4.5K - Amazon 10K- VS(FTW)1k - Fingerhut 1.3K- BP VISA 1K - Indigo 300
WAY TOO MANY INQ's
NO. MORE. APPS. NEED. GARDEN
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.