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Thinking about closing an account

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Contributor

Thinking about closing an account

Right now my credit is fairly fresh and new; I opened 4 account the past couple months with one of them being an experiment. 

 

Fingerhut: Roughly a year and 3 months

Discover: 4 Months

Capital One: 4 Months

New Car: 2 Months

Hutton Chase: 4 Months

 

I opened Hutton Chase because there was a $1500 approval and I wanted to see if Fingerhut or Capital One will see a lender is trusting me with that much cash and hopefully increase my limit. Fingerhut ended up taking the bait in April going from $950 to $1500 and matched the credit limit. So now I really have no need for this type of department store card, will I majorly take a hit on my credit by closing the account paid in full? And if I do end up closing should I apply for a secured card such as CitiBank or just relax and let everything age

Starting Score: 585
Current Score: 740
Goal Score: 800


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Community Leader
Senior Contributor

Re: Thinking about closing an account

You’ll only take a hit if you’re carrying balances on other cards, as your total credit will decrease, increasing utilization. If your UTI is very low, you’ll take little to no hit. Age of accounts won’t be affected either - closed accounts stay on and factor in for up to 10 years after closure.


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TCL $93,100 | Agg. Util under 5%
Message 2 of 7
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Valued Contributor

Re: Thinking about closing an account

My advice is if the account is not costing you anything keep it open for a year.
Relax and let your current accounts age and you might be in a position to skip secure cards
Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 3 of 7
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Contributor

Re: Thinking about closing an account


@dragontears wrote:
My advice is if the account is not costing you anything keep it open for a year.
Relax and let your current accounts age and you might be in a position to skip secure cards

After I pay off the $60, they'll charge $20 per month to keep the Hutton Chase account open. That's just money down the drain to be used toward something else.

Starting Score: 585
Current Score: 740
Goal Score: 800


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Valued Contributor

Re: Thinking about closing an account

If they are charging you $20/month close it as soon as you can i.e. once it is paid off. Your other accounts are sufficient for early stage credit building (3 revolving and a instalment), use them responsibly, let them age then start going for cards that suits your spending rather than secure or crappy cards you have no long term use for
Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 5 of 7
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Established Contributor

Re: Thinking about closing an account


@Adreno wrote:

 

Hutton Chase: 4 Months

 

I opened Hutton Chase because....


Do they report to all three CRA's?











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Goal Cards

Message 6 of 7
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Contributor

Re: Thinking about closing an account


@800FICOGoal wrote:

@Adreno wrote:

 

Hutton Chase: 4 Months

 

I opened Hutton Chase because....


Do they report to all three CRA's?


It's only being reported to TU and EQ, one of the other reasons why I want to close it and possibly replace it with another secured card that reports to call 3 and relax for a year then apply for my final card through my credit union.

Starting Score: 585
Current Score: 740
Goal Score: 800


Take the myFICO Fitness Challenge

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