Closed Account and my Score...

[cp94550]

I closed my PayPal Smart Connect account and my score went up 20 points!  Woo hoo!

[Anonymous]

Congrats!

[SouthJamaica]

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@cp94550 wrote:

I closed my PayPal Smart Connect account and my score went up 20 points!  Woo hoo!

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That's odd. I wonder what that's about.

[BallBounces]

Yeah, I'd like more data to figure out what is happening. 

How does a "smart connect account" report?  What is it?

[cp94550]

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@BallBounces wrote:

Yeah, I'd like more data to figure out what is happening. 

How does a "smart connect account" report?  What is it?

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Reports just like a credit card/revolving account. 

[BallBounces]

What else changed on your profile.

[cp94550]

This account reported at $113/170 in December (accounting for approx 2% of my util) . I paid and closed earlier this week. According to myFICO alerts 3 things happened - balance decreased by 100%, balance decreased by $113 and account updated (paid and closed).

[Thomas_Thumb]

Hello CP94550:

Closing a CC account is not a positive factor in scoring just because it was closed. That being said, reducing a card's utilization from over 60% to 0% can increase score - individual card utilization is a factor in scoring; just not as influential as aggregate utilization. Also, because this card previously reported a balance your score could be positively affected by "fewer open accounts reporting a balance"

I suspect you could have realized the score improvement just by paying off the card and having it report a zero balance but keeping it open.