This is probably a stupid question but i was just wondering if you have a credit card for 2 , 2 1/2 years and you decide to close the account with a perfect payment history does the fact that you have a closed accnt listed on your report have any negative affect on your rating?
Closing an account can adversely affect your credit. One of the most important components of a credit score is the balance to limits ratio on revolving credit accounts. When you close an account, you have less total available credit and the ratio will go up. When that happens, your score goes down. Closing your oldest account may also lower your score. If you have too many cards for whatever credit category the scoring system puts you in, your score could go up. These factors may interact and cancel each other out to some degree but it is clear that the most important one is the balance to limit ratio which comprises 35% of the score. If you have high credit lines and keep your usage low, you shouldn't have any problem in closing a 5K line.
Re: Re: closed accnts look bad? I have a couple of accounts that I know I closed a long time ago but they are being reported as closed by creditor grantor...should I dispute this? They are old tradelines Ex: JCPenney...I know I closed this account at least 5-6 years ago...but it reports as date opened: 02/1989 reported since: 11/1991 date of status 05/1996 last reported: 05/1996 Status: closed/never late Creditors statement: closed at credit grantors request should I bother to dispute items like this? BTW - this example is reported on Experian
Re: Re: closed accnts look bad? If someone looks at your credit report with their "EYES"...they will ASSUME YOU WERE A BAD CUSTOMER...(if you are close to DENIAL...they will make that A...C....B....CREDITOR...the final straw)...I'M NOT SURE IT WOULD CAUSE A DENIAL IF YOUR WERE "ALMOST" APPROVED... I have had "ACCOUNT CLOSED BY CREDITOR" changed to "ACCOUNT CLOSED BY CONSUMER" the way it should be...BUT I also have lost an account or 2 TOTALLY by disputing it... THEY CALL IT "FRIVOLOUS"...THE CRA'S THINK IT DOES NOT MATTER WHO CLOSES THE ACCOUNT!!! I think in "F.I.C.O. LAND"...no points different...
