Good Idea? Close Secured CC

[tim1017]

I'm rebuilding and recently was approved for a few unsecured CC's.  I'd like to close my NFCU Secured card as I don't think they convert (I was recently approved for their Cash Rewards card).  Would closing it cause a drop in my scores?  The reason I'd like to close is I want to take the deposit and pay down my other two cards that have a balance and get my UTI even lower (22%).  Last month I was at a total UTI of 95%.  I'd think the gain in points in a lower UTI would trump any lesser hit I'd take by closing it.  Am I right in my thinking?

[abbafan]

1. How long have you had this card for? If for a year or more, closing it may effect your overall length of credit history considering that you have a few brand new tradelines.
2. What's the credit limit it? Closing it may negatively effect your overall utilization ratio.

[MarineVietVet]

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@tim1017 wrote:

I'm rebuilding and recently was approved for a few unsecured CC's.  I'd like to close my NFCU Secured card as I don't think they convert (I was recently approved for their Cash Rewards card).  Would closing it cause a drop in my scores?  The reason I'd like to close is I want to take the deposit and pay down my other two cards that have a balance and get my UTI even lower (22%).  Last month I was at a total UTI of 95%.  I'd think the gain in points in a lower UTI would trump any lesser hit I'd take by closing it.  Am I right in my thinking?

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Simply closing any CC will not immediately have any impact on AAoA or credit length history. Even after closing the account will continue to report for up to 10 years.

Here is a thread about Closing Credit Cards that explains it much better than I can.

[tim1017]

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@MarineVietVet wrote:

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Simply closing any CC will not immediately have any impact on AAoA or credit length history. Even after closing the account will continue to report for up to 10 years.

Here is a thread about Closing Credit Cards that explains it much better than I can.

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Awesome, thank you and  SEMPER FI.  

[tim1017]

"The most important factor to consider when closing CCs is the affect on your cumulative UTIL percentage calculation; this is the total sum of all of your CC’s CLs (credit card limits) divided by the sum of their balances."

I'm all good then.  Not very concerned about AAoA for this one.  Asking NFCU to unsecure first, if they don't CLOSING.

[tim1017]

According to NFCU the account review process is completely automoated and they can not manually convert the account to an unsecured.  I went ahead and closed the account.