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Closing A New Account That Hasn't Hit My Report ADVICE PLEASE

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Regular Contributor

Closing A New Account That Hasn't Hit My Report ADVICE PLEASE

I recently opened a Fingerhut account (2/19) with a $300 spending limit with a credit score of 589. I've been in the process of removing a 60 day late charge off from Credit One (I know, 60 days sounds early to be a charge off) and a 120 day late on another Credit One account. Today I was informed from Credit One that they would be removing every deliquency from both accounts. Those are the very last 2 baddies on my report so I'm expecting a significant jump in my scores. My scores are current on my sig if you'd like to take a look. My question is if the Fingerhut account that I opened has not reported yet and I close it before it does will there be any indication other than the inqury that I ever had it and would that be a smart thing to do. The reason being is because with my score increase and no more baddies on my report I'd expect I could be approved for better lines of credit elsewhere. Thanks for your feedback Here's a little info if it helps.

 

AAoA is 5 years 5 months

Oldest Account is 11 years 11 months

MASSIVE OVERHALL (11) MONTHS IN




Message 1 of 5
4 REPLIES 4
Legendary Contributor

Re: Closing A New Account That Hasn't Hit My Report ADVICE PLEASE

As soon as the creditor approves and opens the account, they can report it to the CRAs.

Closing of the account will not prevent them from reporting.

 

Closing of a revolving account simply terminates ability of the consumer to make new charges on the account.

It does not cancel the account, and does not prevent the creditor from reporting past or current account activity.

 

That does not mean that they will or must report.

I would give them a call and ask them before making any assumption that it will not report.  It is purely at the option of the creditor.

Message 2 of 5
Regular Contributor

Re: Closing A New Account That Hasn't Hit My Report ADVICE PLEASE


@RobertEG wrote:

As soon as the creditor approves and opens the account, they can report it to the CRAs.

Closing of the account will not prevent them from reporting.

 

Closing of a revolving account simply terminates ability of the consumer to make new charges on the account.

It does not cancel the account, and does not prevent the creditor from reporting past or current account activity.

 

That does not mean that they will or must report.

I would give them a call and ask them before making any assumption that it will not report.  It is purely at the option of the creditor.


I guess my main question is if it's going to have a negitive impact on my report if I close it being I just opened it less than a month ago.

MASSIVE OVERHALL (11) MONTHS IN




Message 3 of 5
Legendary Contributor

Re: Closing A New Account That Hasn't Hit My Report ADVICE PLEASE

Assuming the account is closed with a $0 balance, once closed, you will lose the account in all scoring of your % util.

 

Most significantly, the credit limit of the account will no longer factor into the denominator of your % util calculation.

The extent of that effect will depend upon the amount of its credit limit.

Message 4 of 5
Regular Contributor

Re: Closing A New Account That Hasn't Hit My Report ADVICE PLEASE

Call them asap. DW was in same situation with Credit One / $300 SL. Since they were dog slow sending her the card, we started asking q's on this forum and folks advised us to close the account. She called that night, closed it, and it never reported. Her elapsed time was 13 days from approval to closure.  They only HP'd Experian.

 

She checked Cap1's pre-qual page, was listed, app'd for QS1, and was approved, $3,000. Much better.

Aug 2019: EQ 713, EX 698, TU 708 (Mar 2017: 550's)

AAoA: 8.6 years, Gardening Goal: Spring 2020
Message 5 of 5
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