How would this effect me....

Submitted by hpham714 on Wed, 01/20/2010 - 18:57
Forums

Current status:

Credit limit-$3500 ( 2 $1750 credit cards)
Student loans $15,500
Car loan- will be paid off next month!!!!

-I usually the credit cards pay in full or last statement in full every month.
- I make payment to my student loan directly out of my bank account and current have no late payment with them since 2007.

-chase credit card-CL$1750- open in 2006 has been in good standings since it open and never been late once.

orchard credit card- open for 5 years and have never been late or any problems with them..

I use to have bad credit a few years back and started fixing my credit thru a secured visa card(orchard bank CC). As of today, my credit score is about 750ish.

Yesterday, I notice my chase CC had an order credit limit charge of $39. Since I've been in good standing and this is the first time i ever got the fee, I thought i call customer service to ask if they can get it reverse. talking to the CSR, we got in a heated battle over the $39 feee and bc of that I decided I would close my account before thinking about what effect it would have on me.

I called back 2 mins later to reopen the account because I was heated at the moment and the situation got blown out of control because the CSR was from the Philippine and there was some language barrier. during this time, I was informed that my Chase CC can not be reopen until i repay an old debt i have with them. They purchase first bank and now own a credit card debt I have which was open in march 2001 but has since been remove from all 3 of the credit bureaus. They mention that they sold my account and charged it off already.

How would this effect my credit score?

What should I do?

due to closing my chase account.. my credit limit is not only 1750 and I lose 4 years of good standings with a credit card company.

Should i just start applying for a new CC? I just applied for an AMEX because I been wanting to get one.

Also, I've been pre-approved for an amex card where you pay in full month.. does this card help improve my credit score?

Thank you for any input....

Hello and welcome, Usually closing your oldest line of credit is not a wise move. Do you have any lines of credit that are as long or longer than the Chase card? You mentioned you have two cards, this is why I ask. Overall you may not feel much of an effect since you have a car loan and student loans. All of your score does not just go on your credit cards. Also figured in there is your debt to ncome and other things.

Thu, 01/21/2010 - 00:01 Permalink
Hefner (not verified)

The other credit card is the oldest credit line. I usually keep my balance pretty low or if I do use it, I pay in full.

should I apply for another credit card? I just recently applied for an Amex card.

Thu, 01/21/2010 - 01:59 Permalink

Not sure how much you owe on the old debt you had in 2001 that they bought but I would not pay anything on it because it will start the SOL all over again. Do you know what the SOL is in your state? If it has past then they can not try and collect on the debt and if you pay on it it will start the SOL all over then you will have to pay it. I would hold off on applying for another credit card since you just recently applied for one. Each time you apply that puts another inquify on your report and lowers your score.

Thu, 01/21/2010 - 04:52 Permalink
hefner (not verified)

I live in California.. Does anyone know the SOL in this state?

Thu, 01/21/2010 - 09:29 Permalink