Closing accounts????

[pattycake]

What is so damaging about closing accounts? 

Is it:

• Loss of the credit line
• Sheer inactivity of the account

I have an Orchard Bank Card that I've had for 2 years, but the credit limit is low ($1100), the annual fees are high ($59), and getting a credit limit increase is like pulling teeth.  I have other cards that charge low to no fees and have $10k lines of credit, so I don't even really want or need this anymore.

My scores are beginning to trickle up, and I'm quickly approaching the 700 Club. 

Thoughts????

[Anonymous]

Mostly for util purposes. If you don't need the CL then close it (especially since it has an AF) because the payment history will still be on your credit report.

[Ausfarm]

You also want to take into consideration the avg age of your accounts.  If you're closing a card you've had for a really really long time, you could see a hit.  Have you asked to have the AF removed or, otherwise, have the card upgraded to a card w/ no AFs?

[Anonymous]

Have you asked Orchard to do away with the AF?  Is this your newest or oldest card? A < than 2 year old card is not old.............I would dump it. even if you take a hit, it will be a small one and you will quickly recover from it. If you're approaching 700, you don't need a card with an AF.

[Anonymous]

Actually, I believe OP would keep the age of the card and it will remain on their history for ten years if the history is positive. The hit would come in in the loss of utilization especially if the balance is not $0.

[fused]

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pattycake wrote:

What is so damaging about closing accounts? 

Is it:

• Loss of the credit line
• Sheer inactivity of the account

I have an Orchard Bank Card that I've had for 2 years, but the credit limit is low ($1100), the annual fees are high ($59), and getting a credit limit increase is like pulling teeth.  I have other cards that charge low to no fees and have $10k lines of credit, so I don't even really want or need this anymore.

My scores are beginning to trickle up, and I'm quickly approaching the 700 Club. 

Thoughts????

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Read this.

http://ficoforums.myfico.com/fico/board/message?message.uid=41393#U41393

[pattycake]

Thanks for your help, I ended up closing the account. I was actually surprised that they didn't fight it, but then again, they weren't making any money off me since I never used it.

I'm not likely to take a hit, since I've had my CLs raised on all my other cards in the last week, and I recently received a new card from Chase with a $10,000 limit that is not yet even showing up on my reports.