Finally Closed CreditOne, and My Scores Dropped

[Anonymous]

I know my reports are healthier from having closed CreditOne, but Equifax dropped six points and Experian dropped four points where TransUnion has yet to show the impact from closing the account.  AmEx Platinum finally appeared on my credit reports after seven weeks, but it seemingly neither hurt, nor helped my ratings.  This is some tricky stuff.

[CreditobsessedinFL]

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@Anonymous wrote:

I know my reports are healthier from having closed CreditOne, but Equifax dropped six points and Experian dropped four points where TransUnion has yet to show the impact from closing the account.  AmEx Platinum finally appeared on my credit reports after seven weeks, but it seemingly neither hurt, nor helped my ratings.  This is some tricky stuff.

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I have been waiting to close mine, I feel like I am paying the $8.00 a month to stave off the volatility in my score. $16.00 more max, hopefully my score will settle down and then I will lower the hammer, I have read that they are nearly impossible to reach anyway, during this time. 

[K-in-Boston]

The point drop could be due to the new account penalty for the Amex Platinum.  Did closing the Credit One account affect your aggregate utilization?  Keep in mind you replaced an account that factored into revolving utilization with one that doesn't.

[ddamage]

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@Anonymous wrote:

I know my reports are healthier from having closed CreditOne, but Equifax dropped six points and Experian dropped four points where TransUnion has yet to show the impact from closing the account.  AmEx Platinum finally appeared on my credit reports after seven weeks, but it seemingly neither hurt, nor helped my ratings.  This is some tricky stuff.

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I also have credit one and my scores have improved. My question is why do we want to close a line of credit? Is it a bad credit card? Does having this card hurt us?

[K-in-Boston]

The card doesn't hurt reports, but it may hurt finances.  Depending on which Credit One product it is, if it's a fee harvester card it's best to close it when it is no longer needed.   That helps finances for not paying fees on a card and possibly having no grace period for new purchases since interest begins to accrue at the time of a charge.  Not all Credit One cards are like that; they do offer more traditional cards with rewards and grace periods now.

Closing the card doesn't really make much of a difference for your credit reports unless it negatively affects the amount of available revolving credit you have.

[ddamage]

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@K-in-Boston wrote:

The card doesn't hurt reports, but it may hurt finances.  Depending on which Credit One product it is, if it's a fee harvester card it's best to close it when it is no longer needed.   That helps finances for not paying fees on a card and possibly having no grace period for new purchases since interest begins to accrue at the time of a charge.  Not all Credit One cards are like that; they do offer more traditional cards with rewards and grace periods now.

Closing the card doesn't really make much of a difference for your credit reports unless it negatively affects the amount of available revolving credit you have.

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Oh ok. Thank you K-in-Boston.

[CreditobsessedinFL]

Ah-ha, thanks @K-in-Boston ! I see why the forums say YMMV, since every account and credit profile is so different. Amex Plat is a charge card, Credit one is a charge card,  so for OP, his overal utilization might be affected, AND the drop might actually be residual from the AX showing up, got it. Since for AAoA it stays for 10 years, that is another bailiwick, mine is only $600 CL, so once my scores settle from the new cards,  I should be clear to close, which is what I thought. Thanks for clarifying.

[Anonymous]

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@ddamage wrote:

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@Anonymous wrote:

I know my reports are healthier from having closed CreditOne, but Equifax dropped six points and Experian dropped four points where TransUnion has yet to show the impact from closing the account.  AmEx Platinum finally appeared on my credit reports after seven weeks, but it seemingly neither hurt, nor helped my ratings.  This is some tricky stuff.

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I also have credit one and my scores have improved. My question is why do we want to close a line of credit? Is it a bad credit card? Does having this card hurt us?

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One line of credit helps as much as the next, but CreditOne is known to be a fee harvester with very limited rewards (if any) and high APRs, and as such is seen as a subprime lender. If you can get Discover, CapOne, Ollo, etc, it's often good to replace CreditOne with one of them as you stand to benefit from lower rates and some rewards without paying monthly fees.

[ddamage]

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@Anonymous wrote:

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@ddamage wrote:

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@Anonymous wrote:

I know my reports are healthier from having closed CreditOne, but Equifax dropped six points and Experian dropped four points where TransUnion has yet to show the impact from closing the account.  AmEx Platinum finally appeared on my credit reports after seven weeks, but it seemingly neither hurt, nor helped my ratings.  This is some tricky stuff.

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I also have credit one and my scores have improved. My question is why do we want to close a line of credit? Is it a bad credit card? Does having this card hurt us?

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One line of credit helps as much as the next, but CreditOne is known to be a fee harvester with very limited rewards (if any) and high APRs, and as such is seen as a subprime lender. If you can get Discover, CapOne, Ollo, etc, it's often good to replace CreditOne with one of them as you stand to benefit from lower rates and some rewards without paying monthly fees.

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I got Penfed for 17.5 k last month but my AAOA is like around a year after rebuilding and other cc being closed in the past. My FICO scores are 678eq, 667tu, and 686ex. I have penfed, lowes 5k, discover secured 1k, best buy citi 1700, wayfair 4k, discount tire 1800, credit one 800.

[CreditobsessedinFL]

Congratulations on the PenFed, 🤩 what a SL! Adios Credit One, I am right behind you.