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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4500
8812 Magic Points
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Fri Aug 29, 2008 1:34 pm
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| Thanks for explaining this Neicy. So it would be better to close accounts that were newer and in good credit standing then to close older ones in good standing? We have four total accounts Discover, lowes, fashion Bug and Dell. I want to close the Dell and Fashion Bug when they are paid off and only have two. Is this a wise idea? |
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Mary
Joined: 06 Jul 2006
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Posts: 730
17417 Magic Points
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Sat Aug 30, 2008 10:24 am
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Yes, I agree with you Neicy. Since the new credit cards do not have a credit history, it is better to close them down rather than closing the older ones on which you have been making purchases for long. These old credit cards add up to your credit score because credit history or the payment history constitutes about 35% in your score. Another thing is that the more your credit approaches the credit limit, the creditor finds it risky to lend you money because you have already an existing debt which you have not yet repaid.
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Where there's a will, there's a way !! |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4500
8812 Magic Points
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Wed Sep 03, 2008 1:25 am
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| Good explanation Mary...but of course you are good at this. |
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Better Credit Guru
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Subject: Close them anyways
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Thu Oct 16, 2008 4:59 pm
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| It is always better to close unnecessary accounts provided they are closed at the customer's request and in good standing at the time. Then follow-up with a letter to the three reporting agencies (equifax, trans union, and experian). It seems folks like Credit Guru have been advising too many people in our country. Seen the stock market lately? Thanks a lot for your help Credit Guru. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4500
8812 Magic Points
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Fri Oct 17, 2008 11:36 am
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| What would you say in this letter to the credit bureau. I would actually like to close a couple accounts that we really don't need to have and get rid of the temptation of them. Do you simply explain that you are closing it at your own request and would like that displayed on your report. I would really be interested in this as I am going to pay off an account today, thanks. |
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credit guy
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Subject: close unused credit cards
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Tue Dec 30, 2008 7:22 pm
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| credit guru couldn't be more wrong. I check credit for a bank for a living. close unused cards. they count towards your DTI ratio, aka debt to income, because banks see them as potential debt you can draw on. additionally, if someone were to steal your identity, it provides them yet another account to tap. as long as you have a few credit accounts open and pay them on time, your score will be fine. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4500
8812 Magic Points
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Tue Dec 30, 2008 7:36 pm
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| I wondered this and remember asking the question before. It sounds like you could lose out either way. First if you close out an old card I hear that you could lose the credit history from that card. Meaning if you opened a card 5 years ago and have always been on time with payments and then wanted to close that card you could lose valuable credit history. Second, of you don't close the card it will be like you mentioned above...the open credit line could hurt you. I guess if you still had a couple cards that give good historyt you would be okay but the dilemma I always have is that we only have a couple cards and I wanted to go down to just one but do not want my score to drop if we close those accounts. What would be your suggestion? |
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Dorothy
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Subject: visa/dsnb
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Thu Feb 19, 2009 3:16 pm
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| A credit card has been issued in my name, and Equifax cannot tell me what the deal is. I have opened no new credit cards, and want to know how I can contact someone to get this removed from my credit report. |
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swingdancer
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Subject: Thanks!
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Wed Feb 25, 2009 5:29 am
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| That stuff about Macy's is very helpful. Should have known it would be them... |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1298
28935 Magic Points
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Wed Feb 25, 2009 12:43 pm
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Hi Dorothy
I think that this is an instance of identity theft where somebody has opened a new credit card using your social security number and other sensitive information. Therefore you should immediately file a complaint with the Federal Trade Commission to become a registered victim of identity theft. After filing the complaint with FTC, you should also notify it with the local police station and file a complain there.
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All the Best 
Justin |
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oldguy
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Subject: What does having lots of accounts cost me.
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Sat Apr 11, 2009 3:51 pm
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First.. thanks for the VSDSNB info.. googled here and it really helped.
This is about what credit guru posted.
I have a very long credit history. Using the rule of never close a good revolving account that credit guru pointed out, I have alot of old open accounts (more than 20) with 0 balances that I never use, some going back to the 80's.
The analysis that I got w/my score on the Myfico web site confirms that the my high debt/available is helping my score, but it also says the the high number of open accounts and high available credit is pushing it down.
Which is having the bigger effect? |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1362
Location: Los Angeles, California
29592 Magic Points
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Mon Apr 13, 2009 9:01 am
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Hi Oldguy
The two most important factors that affect the FICO score is the credit history and the amounts owed factor. Now, if you have high unused balances on your credit cards, this means that the "amounts owed" factor that contributes 30% in your credit score, is low and so it will help you to improve your score. You may close down all open account if you have not used them because unused accounts do not play any role in your credit history.
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Keep in touch
Carol |
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SteveMcG
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Subject: Closing Accounts
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Wed Apr 29, 2009 4:16 pm
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| Notwithstanding the debate on whether an account should be opened or closed, can someone verify that when you do close an account it will still appear on your Credit Report for the next 10 years. On reviewing my credit report this appears to be the case. |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17417 Magic Points
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Thu Apr 30, 2009 8:18 am
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Hi Steven
If your account is still open (suppose you still use the credit card), then it may show in your credit report even after 10 years, because the account is in use and is still contributing to your credit history. But if you do not use the card or your account is closed normally (because you have already repaid the debt), then it may appear in your report for a maximum period of seven years. If it still appears in your report after 7 years, I think that you should dispute the listing with the bureaus in writing.
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Where there's a will, there's a way !! |
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Meri
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Subject: visadsnb
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Wed May 20, 2009 7:00 pm
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| Thanks for information I needed. |
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