Hey everyone - I closed my Credit One card last month, and it reported a $2 balance due to interest or something like that. No score change last month. This month it reported closed and $0 as I paid the interest from the last time I had a balance. My score dropped 10 points from this, and as you can see below the remarks said "paid loan".
This should not have happened, correct? Why on earth would I lose 10 points for paying off revolving debt?
When you closed the account, bringing the credit limit to $0, how much did that drop your total amount of available credit? Closing a card reduces your total available credit limit - affecting utilization. Did your util increase with the closing? Also closing can affect the number of accounts showing a balance. For example, if prior to closing, you had 1 out of 3 showing a balance, you would now have 1 out of 2 - possibly dinging you for 'too many accounts with balances' Can you tell us about your other accounts?
Sorry, I've been around here long enough to know to include data points lol.
My current reported utilization is 3% (354/12500)
Revolving accounts with balances - 1/5
All open accounts w/ balances - 4/8 (1 card reporting balance, mortgage, auto loan, personal loan)
Let me know if you need anything else - AAoA from my credit reports is like 2 years or so.
Yea, with those stats, a 10pt. score drop due to closing seems quite odd.
I'm assuming you already triple checked to make sure nothing else, unrelated, changed prior that may have caused the drop in score; meaning the report of a closed account simply triggered the alert / score update reflecting a decrease that resulted from some other alertable event?
Is it just one bureau that updated so far?
Yea I find it odd as well, if anything I expected to maybe gain a point or two. I have checked my Experian report and do not see any other credit alerts. No new inquiries (although I have a ton lol), no missed payments, etc.
So far I have only seen this change on Experian. Do you think it's weird that there is a comment on the alert that says "paid loan"? Maybe Experian is reporting the account type incorrect?
Disregard the part about the account type. Checked my report and it's showing Revolving. So that must be a MyFICO deal.
I'm baffled, I guess I will wait to see what happens to TU and EQ.
OP - if you can - when was that TL opened? SL/CL on the card? Can you list out your other cards with SL/CL, when opened, etc.
Closed Credit One Card - Opened 11/2017, SL 300, CL 700
Blue Nile Card - Opened 6/2018, SL 1000, CL 4200
Kohl's Card - Opened 5/2018, SL 300, CL 700
Wayfair Card - Opened 9/2018, SL I think 250?, CL 3700
Capital One - Opened 9/2018, SL 300, CL 800 (combined another CapOne Card)
Military Star - Opened 10/2018 , SL/CL 2950
So my Credit One card was the oldest of these cards, but that shouldn't matter as it will be counted for 10 years correct?