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I had a Discover Card account that hadn't been used in 5 yrs

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Posted on Mon Nov 05, 2007 11:51 pm  

that makes sense dwarfess...it's good to close new accounts if they're not going to be used and sometimes it's good to close them if you have too many cards/credit already!
goodnatured



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538 Magic Points

 
Posted on Tue Nov 06, 2007 3:04 am  

Wow, that is a significant drop, and your credit has been good, this seems unfair. Wonder who came up with this wonderful system.
Laura

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Posted on Tue Nov 06, 2007 3:34 am  

Hi Dwarfess,

I really appreciate your information. I was never sure whether inactive cc's are considered open accounts or not. This is again a learning for me. Smile

Goodnatured,

If a closed account is in good standing it will reflect on your report for nearly 10 years. However the drop of this account wont lead to drop in your score unless you have a derogatory on the report. A clean report is what we want so it should be our trial to keep all the accounts in good standing. Smile
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Laura.
debtstinker



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Posted on Tue Nov 06, 2007 7:30 pm  

Now I get it! if you're in good standing when you close your account that can be good, however, if through your time with the creditor you did not have a good account and close it that will affect you. a little confusing, thank you Laura and Dwarfess
dwarfess



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Subject: Closing a new credit card account
 
Posted on Wed Nov 07, 2007 4:42 am  

Hi Laura,

Found out the hard way about having too many open accounts. Since I have good credit, I can get any card I want. Decided to get one to use for upcoming college expenses for my youngest daughter. Chase issued with 10k limit and I was shocked to see my score drop so much.

Now I'm making sure I close newer accounts first. History is good, if its good! Better to keep open old accounts with good history, than startup new stuff.

I had a Discover Card account that hadn't been used in 5 yrs. Since it was issued in 1993, I closed the new Chase account and activated the Discover Card again.

Now...if only I could get my oldest daughter's credit cleaned up. There's a whole other world out there when it comes to credit repair. CA's are driving me nuts!
Laura

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Posted on Wed Nov 07, 2007 5:05 am  

As far as CA's are concerned you need to know the FDCPA well. Just being informed can save you from the dilemma. Smile
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Laura.
goodnatured



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Posted on Sat Nov 10, 2007 12:59 pm  

This is the truth, but it is like reading tax information, unless you are in a crisis most people don't read up on it, after it is too late. I got to know it only because I had a problem.
Laura

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Posted on Wed Nov 14, 2007 9:27 am  

Thats why we try to warn people here on the forum. But alas they come only once they are into trouble.
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Laura.
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Subject: Closed Accounts
 
Posted on Thu Feb 07, 2008 10:38 am  

How long does closing an account have a negative impact on your credit worthiness? Thanks. Great website...
glottis



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48 Magic Points

 
Posted on Fri Jun 06, 2008 5:52 pm  

what i know is when you do close an account, it definitely hurts your credit score... but i never heard of a case such as this.. being that you want to close an account even before starting to use it.. thanks for enlightening dwarfess

"Score should only drop if you close an old account. For new accounts, closing them before actually using them should have no impact. Be sure to send letter CMRR. Letter should read something like the following"
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anthony

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Posted on Sat Jun 07, 2008 11:39 am  

dwarfess is correct in the sense that if you have too many accounts it is better to close the new once than to close the old ones that has good credit history. Even if you have not used your old credit card yet, still it is better to keep the old card and start using it, at least to pay your monthly utility bills, but make sure that you repay the bills on time. This way you can have a good credit history built and you will be able to increase your credit score.
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Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
CMBV22

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Posted on Sun Jun 08, 2008 5:20 am  

I agree with anthony I will point out that you do want to make sure you dont put to much on the CC as your debt to credit ratio effects your fico
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Posted on Mon Jun 09, 2008 5:12 am  

I don't have a clear idea of debt to credit ratio. can anybody explain it??
anthony

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Posted on Mon Jun 09, 2008 5:31 am  

You are correct CMBV. A better knowledge of the debt to credit ratio helps us to maintain your credit score better. However closing a paid off account implies closing a good credit history of your account and secondly lowering your credit score.

The debt to credit ratio is calculated on the basis of credit history. This ratio calculates your FICO score. The higher is your ratio, the lower is your score and lower is the possibility of getting credit at lower rates.
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Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
marjorie
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Subject: Re Westpac Credit Card
 
Posted on Tue Jul 29, 2008 5:20 am  

I had my credit card for neally fourty years i hardly used it an still the balance not coming down i wanted to close it but i was told i get a bad credit i never ever had a bad credit in my life looks like its gonna take westpac to give me a bad credit, has anyone got any idea to what i should do, shall i cancel, i dont have a job cause of health reasons i had to finish work,

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