Closed Account = -27 points

Anonymous · ‎04-15-2008

DH got hit with a 27 point decrease to his FICO score because an account he closed in November finally reported as closed. It was one of his starter cards that had high IR and AF that they would not remove so we made the decision to close it. It was an old account but not his oldest. That just seems like such a big decrease. He had just passed the 700 threshold too.

Anonymous · ‎04-15-2008

Similar situation here except I got hit with a -16 on mine for opening a starter card account. Disappointing since I opened the account with the sole purpose of building my credit!

llecs · ‎04-15-2008

cybele wrote:
DH got hit with a 27 point decrease to his FICO score because an account he closed in November finally reported as closed. It was one of his starter cards that had high IR and AF that they would not remove so we made the decision to close it. It was an old account but not his oldest. That just seems like such a big decrease. He had just passed the 700 threshold too.

Was that his only open CC?

If so, it would explain the loss due to the lack of mix of credit.

If not, then this account may have factored into utilization well. Closing it with balances on your other CCs increased your utilization.

Message Edited by llecs on 04-15-2008 01:35 PM

Anonymous · ‎04-15-2008

No he has around 6 other CC's. I can see the utilization being increased slightly but the limit on the closed card was only $300. The only thing we could figure out was the average age was decreased.

Anonymous · ‎04-15-2008

cybele wrote:
No he has around 6 other CC's. I can see the utilization being increased slightly but the limit on the closed card was only $300. The only thing we could figure out was the average age was decreased.

Closing a CC has no immediate effect on average age. If it's on your reports, it counts towards average age whether it's open or closed.

What was util before and after?

Also, how many total open accounts (all open accounts, not just CCs) before and after, and how many accounts with balances before and after?

Message Edited by cheddar on 04-15-2008 11:21 AM

Anonymous · ‎04-15-2008

His UTI was 27% prior to the closing of the account and after 29%. We are still waiting on CCC to update new balances and UTI will be even lower. Before the account posted as closed, he had 10 open total accounts (1 car loan), 7 with balances. After closed card, 9 open accounts and 7 with balances.