Want to close out Credit One

[Dhani76]

If account is closed by consumer, does that reflect negatively on the credit reports?

[Anonymous]

It will change your utilization, so it depends on how much total debt you have compared to your total available credit. The act of closing the card itself though will have no impact.

[Cherekas]

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@Dhani76 wrote:

If account is closed by consumer, does that reflect negatively on the credit reports?

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Its better to be closed by consumer than credit grantor. Save yourself the fees and close it, if it wont negatively impact your credit file.

[HeavenOhio]

Scoring doesn't care who closed the card, but it's always nice to close on your own terms. From your other recent thread, we know that you're carrying some credit card debt right now, so utilization might be impacted. But Credit One limits tend to be low, meaning that the impact could be little to nothing.

I think the bottom line is that these cards are a big headache. If you feel like closing the card, close it.

[Anonymous]

The impact will be of reducing available credit and number of open accounts, etc. It will probably drop your score by a bit due to increased utilization and other factors that FICO considers, but if you have several other accounts open and this one only takes a tiny portion of your available credit then there's not much to worry about.

[AverageJoesCredit]

As the Joltdude would say, "Everytime a Credit One is closed, an Angel gets its wings" Thats right Susie, thats right!

[Anonymous]

I agree! Whatever it may cost your score closing out credit one is better than keeping a card you will pay tons of fees on. Also in my experience closing out cards that weren’t for the long haul is better when you are trying to pay off excessive debt. Good luck on your choice!

[Anonymous]

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@HeavenOhio wrote:

Scoring doesn't care who closed the card, but it's always nice to close on your own terms. From your other recent thread, we know that you're carrying some credit card debt right now, so utilization might be impacted. But Credit One limits tend to be low, meaning that the impact could be little to nothing.

I think the bottom line is that these cards are a big headache. If you feel like closing the card, close it.

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Agree but to the bolded, while that particular action wouldn't negatively impact the score on its own, if the OP was sitting across the desk from a loan manager trying to get an installment loan (car, mortgage, personal loan, etc.), it might not look as good to that decision-maker when reporting an account as "closed by credit grantor" vs "closed by consumer".  As Heaven/Ohio alluded to though, it's highly unlikely a credit card issuer or most other revolving account credit grantors give much of a crap or even makes a note of it, but having recently closing on my house I can attest to the fact I had to explain anything and everything out of the ordinary on my report.