Anyone know what effect positive closed accounts have on your score? Do they still add history? Or does the tradeline need to be open and active?
The tl doesn't have to be open to give or add history to the report? So, if I have an account 2 years old w/ a toy limit of $700, closing wouldn't hurt my score? One of my reason codes is too much available credit, too many active tl's with balances (bs they get paid in full each month), so I'm thinking to close what I don't use....good or bad idea??
Closed lines don't count in your ratios. So closing accounts may reduce available credit, but it also reduces the ratio of balance to available credit. It's a trade off that you have to consider. The truth is, no one really knows what impact anything has on scores. The reason they show a balance is that the credit card companies usually report on your cut off date. So the balance that is on your statement (that you will pay in full) is showing as a balance on your credit report. The way to keep from showing balances is to pay it online like the day before the statement will be issued.
One of my FICO reason codes from EQ is "too many bankcard accounts". I have 5 bankcards open, and about 9 closed (the closings are due to card consolidation, like combining 3 CapOne cards into one, and also card upgrades). FICO states that even if the accounts are closed, they're still added into the mix. It seems as though we're penalized, score-wise, for shopping around for better offers and better managing our finances. It's all bs!
