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

[Anonymous]

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. 

[Anonymous]

---

@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. 

---

FICO score drop from closing a card usually comes from utilization going up because with same total spending less total credit available.

What other cards do you have?

You should consider a Discover card if you do not already have one.

Scores are important but in isolation are not so meaningful.

Focus on what credit can do for you instead of getting over 800.

[Anonymous]

Thanks for response.

Not the case, I believe was AAoA.

My Utilization is under 25%

Existing accounts:

Disco 3k limit

Cap1 2500 limit

Amex 1k limit

Credit one 900 limit

Credit one 800 limit

1st premier 400 limit

1st premier 1k limit

Carecredit 5500 limit

Avant 1500 limit

Merrick bank 1200 limit

Recently aquired:

NFCU CC 10k limit

NFCU CLOC $500

Amex green 1k finance limit no spend limit

Wife added me as an AU to a Cap1 w/ 700 limit and 0 balance, 6 years age and bumped me over 25 Fico8, that was months ago.

[Anonymous]

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.

[dragontears]

---

@Anonymous wrote:

Thanks for response.

Not the case, I believe was AAoA.

My Utilization is under 25%

Existing accounts:

Disco 3k limit

Cap1 2500 limit

Amex 1k limit

Credit one 900 limit

Credit one 800 limit

1st premier 400 limit

1st premier 1k limit

Carecredit 5500 limit

Avant 1500 limit

Merrick bank 1200 limit

Recently aquired:

NFCU CC 10k limit

NFCU CLOC $500

Amex green 1k finance limit no spend limit

Wife added me as an AU to a Cap1 w/ 700 limit and 0 balance, 6 years age and bumped me over 25 Fico8, that was months ago.

---

The problem with your theory that it is due to AAOA changing because of the closed card it that FICO includes all closed accounts in the AAOA calculation, so unless the account was completely removed from your reports it is still "counting" in your AAOA 

[Anonymous]

You can see the effect and why. Nothing else has changed across my accounts, no other statement updates, new CC accounts nor the newest NFCU Auto re-fi have updated yet. This is it! Please help me understand.  Thank

[Trudy]

As @Anonymous  indicates the UTL change for the closed account with a balance causes you AGG UTL to go up.  The the small amount increase is not the culprit, the score drop is likely due to this closed account having a balance (the AF) and now shows as 100% UTL.  This should be easily rectified once you pay the $99 and it reports as $0.  Regardless of the CL (small), the fact that it's an individual card with 100% UTL hurts.

As @dragontears  state, the closed account will not affect your AAoA until it no longer appears on your report.  Even as closed, it counts towards your AAoA as long as it's still on your report.

I would not suggest being added to any account with a bunch of lates.  They become yours. Timely payments majorly trumps Age of Accounts, but your age should not be affected anyway.   I think it's as simple as closed/100% UTL and you should be fine once it reports $0.

[RSX]

I am guessing it is NOT your closure, but these 3 new accounts that caused the drop

Recently aquired:

NFCU CC 10k limit

NFCU CLOC $500

Amex green 1k finance limit no spend limit

new accounts and the associated Inquiries are likely the cause

wait a couple of months and some of those points should come back

[Anonymous]

---

@Trudy wrote:

As @Anonymous  indicates the UTL change for the closed account with a balance causes you AGG UTL to go up.  The the small amount increase is not the culprit, the score drop is likely due to this closed account having a balance (the AF) and now shows as 100% UTL.  This should be easily rectified once you pay the $99 and it reports as $0.  Regardless of the CL (small), the fact that it's an individual card with 100% UTL hurts.

I would not suggest being added to any account with a bunch of lates.  They become yours. Timely payments majorly trumps Age of Accounts, but your age should not be affected anyway.   I think it's as simple as closed/100% UTL and you should be fine once it reports $0.

Trudy, What I dont understand, it shows zero balance. Also, I received a Statement for JUne, Did not for May, It shows on my Statement from Indigo, the $99 annual fee, and subsequently a $99 CR with a zero balance owed, No money owed at this time. When it posted to my EX it shows zero Balance. My 3B updates every 15th, so I must wait a few weeks for the full picture, and I'm sure by that time it'll be reflected in the other Bureaus. I pay the $39 per month for this invaluable information, Im a bit OCD about it, and as you can see on my screen shots, I've worked diligently to get my scores up, to have this Hammer dropped on my head. Took the steam out of my sails.. Thanks for the added clarity.

---

[Anonymous]

---

@RSX wrote:

I am guessing it is NOT your closure, but these 3 new accounts that caused the drop

Recently aquired:

NFCU CC 10k limit

NFCU CLOC $500

Amex green 1k finance limit no spend limit

new accounts and the associated Inquiries are likely the cause

wait a couple of months and some of those points should come back

---

They have not posted yet, they were all processed on June 19, Inquiries Included. The Inquiries only slightly effected my scores. The Auto-Refi thru NFCU & the CC were Hard pulls on TU & EQ Solely, the CLOC was using the Auto Refi Pull, so no damage there. The Amex was EX Pull.