loosing a credit line

[Anonymous]

I know that dropping or losing a account  like selling my vehicle might drop my score because of losing a trade line.

How much does anybody think it will drop, if at all?

Vehicle is a LEMON and lemon law did not help and my sanity is not worth keeping it.

And tired of a 400.00 a month payment anyway.

Will probably purchase a friends 5,000.00 used vehicle.

Anyone? Anyone?

Thanks. 

EQ - 661    EX - 677     TU - 678 as of 12/10/07

[Anonymous]

You will not lose the TL Just because you close an account. Good standing accounts (no late pmts) will stay on you CR fo 10 years......bad ones for 7 years....from close date. OR if CO (which this is not) from DOFD or DOLA

So if you sell the car in Jan  and have never been late it will be a good TL for 10 years.

Message Edited by HappyDays on 12-27-2007 12:51 PM

[Anonymous]

Thanks I was afraid to get rid of trade line for that reason.

But doesn't that lower your utility?

[Anonymous]

when an account is closed it does not count in your UTIL. UNLESS  you close it & still owe. This is bad as the amount that is owed counts  but not what would have been your CL.

[haulingthescoreup]

Since it's a car loan, it's over in the installment loan slice of the credit pie chart. It isn't doing anything with your revolving util anyway.

To clarify, all closed TL's should keep reporting for 10 years after the date that you close them. Any baddies that are on them will show for 7 years from the time that they happened, and then fall off. So if you have a late from May 2006, and you sell the car in January 2008, the history will remain until January 2018, and the late will fall off in May 2013, leaving four and a half years of clean history.

More and more CCC's seem to be deleting entire TL's when you goodwill them. So with minor baddies on closed accounts, you might be doing better just to wait for them to go away on their own, and not risk losing the entire history.

[Anonymous]

Thanks,

The account has been perfect since inception. So it will be a great account for 10 years but I was just worried it would lower my score because the utility drop. But I can see it should not change much if anything.

Thanks again.

[Anonymous]

Actually it just dawned on me.

If I lose the truck payment it does not mess with my utility but it would mess with my

credit mix.

[haulingthescoreup]

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zman wrote:

Actually it just dawned on me.

If I lose the truck payment it does not mess with my utility but it would mess with my

credit mix.

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There's an ongoing debate about this --does an installment line have to be open to count? You might wind up being a forum guinea pig, I'm afraid.

It seems ridiculous to me that we would all have to have some piddle-squat installment loan open at all times just to keep the credit mix box checked off.