HELP - Closed a SubPrime CC and my Scores crashed?!

[Anonymous]

I'd like to add, my new concerns are I'm scared to close my First Premiers & Credit One Cards... They're Sub Prime, little growth potential, and First Premier charges an $8.25 per month service fee per TL. I can pay them to Zero Balance & Close, but fear a severe History Crash. I have graduated beyond these Sub CC, however, I keep them for the reasons specifically in this Topic. I feel like as Im stuck. A question, when would it be advised to Dump them> Totalling $3100 Available TL's. Thanks

[dragontears]

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@Anonymous wrote:

I also have several collateral accounts with Matco Tools 8k

Snapon Credit 17k

Affirm house account 4800 (owe 1700 left)

All my payments 100% and have financed Motorcycles and cars with excellent history.

I'm baffled. my portfolio is thick, but less than 4 years old. Only derog I've been fighting is a closed Child support account.

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Is it possible that the derog you have been fighting updated and therefore the algorithm is "seeing" it as a recent derogatory account? 

Please be aware that not every change to your reports will trigger an alert with a CMS so the change in score can have NOTHING to do with the alert 

[Brian_Earl_Spilner]

The only way closing an account will affect you negatively is if it raises your aggregate utilization. VantageScore, on the other hand, does not factor in closed accounts for AAoA, so you would see a drop there.

The score drop you're seeing is not related to closing the card. If you have derogatories, check to see when they were last reported. Have a feeling, that was the trigger as the drop you suffered is equivalent to a new derogatory being reported.

[RSX]

confusing i know - since they show only 1 item in the alert

BUT - if you read below the score info in the screenshot  - it says that

**Your score may be affected by additional information in your credit report**

since you have taken a drop and things will take a couple of weeks to sort out, i would go ahead with your closures of First Premier and Credit ONE now - get all the sub prime cards dropped, and then you will start to increase your score with the profile that you want long term

the NFCU $10k will more than make up for all the small CL you had on those other 3-4 cards

as noted in previous posts the change could include

1. the derog being updated

2. the possible 100% util on the $99 charge

these will all sort themselves out - you need to try to be patient and see what your real score is when all these changes shake out - might take until Aug

[Anonymous]

I don't see any adverse changes on My Experian Website account, I have no Dergogatory except an old CS account which isnt reported correctly anyway. The Child Support Case I've disputed for the past year, every month like clockwork, updated on the 20th of June. I'll attach a screenshot. The Dept of Childsupport posted different info to EQ & EX,about how case was closed, appeared closed for chargeoff and was innaccurate on EX. It's been closed for several years, They're ridiculous, so I'll continue the good fight to get it changed or removed, an Attorney is the only other option and it's not really hurting me from what I've experienced over the past few years.

Nothing else is visable on my Fico EX account, other than closed Indigo TL with $0 balance. Even if it had a $99 charge, it would be at 33.35% or so in regards to Utilization. I'll attach a screenshot of the last Statement I received from them, perhaps you can assist with helping me understand. Time will tell, but it's not a small speedbump, it's as if i drove off a cliff!

[RSX]

dont dispute the child support anymore  - when you dispute something that is valid, it gets updated and appears more recent than it really is

if the info is wrong - fight it and get it off your report

but if it is valid, leave it alone - i bet your score will start to improve

(you can look up multiple threads on disputes and how they can have a negative impact on your score)

***i think this is the Root Cause of your scoring issue 

the reason we said your Indigo would show as 100% util, is that if there is a charge on a closed account - the CL is $0 - so even a $5 charge would make it 100% - because you are removing the denominator 

[Anonymous]

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@RSX wrote:

dont dispute the child support anymore  - when you dispute something that is valid, it gets updated and appears more recent than it really is

if the info is wrong - fight it and get it off your report

but if it is valid, leave it alone - i bet your score will start to improve

(you can look up multiple threads on disputes and how they can have a negative impact on your score)

***i think this is the Root Cause of your scoring issue 

I think you may be onto something. I just hung up the phone with EX. Filed another dispute, and this is why:

I checked the CS account update, shows 7 non payments, which is incorrect, however, I noticed it shows the account was Charged off 7 times!! **bleep**?! That is new information, so, someone at EX made an error. Not possible to charge off a CS account first of all, but more importantly, Charge off the same account 7 times. That is my root problem, the verbiage on my EQ doesnt read as such and this is why I've had to battle with EX for so long.

Either way, I have not been successful in removing it, but if it has to be there, it should be accurate at least.

Thanks for your follow up.

[RSX]

i think your better recourse is to deal with the Child Support entity

EX is only reporting what they receive from them - so they are REchecking the info from the source - which you say is incorrect

so fix the problem at the source, and the CR's will then get the correct info

i see the CR dispute option usage as very minimal issue resolution - names - addresses - and the occasional mistake, where you know the source is already correct

[Anonymous]

LATEST UPDATE!!

So after several hours of Calling Bureaus and searching my Monitoring accounts I stumbled upon a Collection that just popped up. It was on Experian, and then it disappeared. Unbelievable actually. I even called them to see if they could help me navigate to find it, it was gone! Vanished. At any rate, I forgot to Screen shot it, however I called both the Collection Company & The Lender. It is Identity Theft! My first ever experience, but beacause Im ontop of my report updates I found it. Anyway, Fico told me the closure of my 1 account could and probably dropped my score, however it was severe. It was suggested I get my Current Burea Updates from AnnualCreditReport.com to check. And Boom, there it is. It's so new, neither Experian Agent nor Fico.com could see it. Crazy. Anyhow I'll post it here for your entertainment & input, I'm in process of Disputing with Bureau, havent check EQ or TU yet, but also a Police report and filing the details aquired from Spectrum idtheft dept. Thats correct, this is a Spectrum Internet account someone opened in my name in California, I live in Florida. I asked for the address from Spectrum, considering accounts in my name, I figured Airfare is low enough, I may go pay my self a visit in Cali. The agent laughed and declined to provide the details.

I hope this is what created all the point drop, Im on the fence now about dumping the other Subprime Cards.

[SouthJamaica]

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@Anonymous wrote:

Last month I called and closed my Indigo CC w/ a $300 limit. It never grew over a 3 year period and never will. Had no balance for over 10 months. I received a Statement for an annual $99 fee. I was shocked I never noticed it. So called and closed it. Today, my FICO alert went off on EX, my Fico8 score dropped from 772 to 705! 67 **bleep** points! **bleep**?! It has not posted to EQ or TU yet, but I'm expecting a similar score crash, I pay for premium FICO Monitoring so my 3B updates on 15th of each month. I called Indigo and asked to reinstate the account and I'd pay the $99 fee, they said I could not do that and said I could reapply, I laughed and declined. 

I have perfect pay history and too many CC under 2 years. Assuming this effected my AAoA, I did similar last year with a Cap1 Prepaid $200 card, didnt realize it hurt me, but zero growth and all my accounts had graduated. 

 I'm asking for some advice in regards to being added as an AU to a few of my Wifes CC accounts, that have 6+ years of history, however she has some 30 day lates, all of which are approx 2 years old. Will this help or hurt me? My AAoA is the only thing that's kept me from reaching Fico8 800's, but I cannot rush history. Any advise would be appreciated, I'm frustrated. 

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1. I assure you that closing the Indigo credit card did not negatively affect your scores. Something else caused that.

2. I would not get added as an AU to your wife's accounts.