I've worked darn hard to get my score where it is now, in the 800 range, give or take a few points, and don't want to see my score take a hit. Seven years ago I couldn't qualify for Sparklets water delivery, and had a score in the 550 range. Well, one of my citi cards (I have two) was showing some fraud activity last month. I haven't used that card in years, but I do check every card every month to be safe. I called, and they wanted to close the account and issue a new card. I requested they not do so, and instead put a hold on the account and allow no more charges. I'm looking to buy a house in the next 6 to 12 months, and want my score at its best. Today I log on, and find my other citi card was showing fraud activity as well. I call, and this time they don't want to keep the account open, and say I could be liable for any charges that may come through, even though they have a "fraud hold" on it, if I don't close the account. These are my two oldest active cards at about 8 years old. My next oldest cards are all in the 6 to 3 year old category. The credit limits are $4k and $13k, and both carry a $0 balance. Won't closing these cards give me a pretty good ding on my score by lowering the average age of my accounts pretty drastically? Average age would go from about 6 years to 4 years. That can't be good, right?
hello from ru Hi. I don't know how to keep alive ur's accounts in Citi bank, but i know how to prevent fraudlent charges and theft identity in future. I think it is not a secret that the most popular ways to steal ur credit card info is a scam emails and hackers attack to online shops ( 95% of all stoled cards i think ). That's mean, that u shouldn't pay ur main credit cards in the online shops, and u should not say to everyone ur personal info by emails or phone. If u need to buy something by the internet, i'm advice u to open another credit card, with small credit line (500-600$), becose cards with small credit line is not interesting for any hackers. About ur cards.. Try to speak with representatives of citi bank in a bank office, this way are preferred for bank, becose when u speak with him by phone he can't identificate u on 100%, and he always think that u can be unauthorized person, i know. p.s. sorry for my english
It will decrease your scores by a marginal amount. I would speculate somewhere in the 20 to 30 point range. Even still, a 720 is the proverbial golden ticket and anything above is merely superfluous.
If you explain the problem to Citi, they may "close" that account number, issue a new number, but keep the history. They did that for me once. They changed the number and sent a new card, but it was the same account on their records. I've had banks "upgrade" my card and give me a new number. Same thing applies. So ask them will it close the account or only that number.
Then there was the time I left my wallet on the bumper of my truck and drove off. Needless to say, I had to report several cards lost or stolen. I just checked an old report. The reissued cards showed up as new TL's but with the old open date, and all previous history. I then had a second set with exact same history showing closed as "lost stolen". YMMV
BTW, congratulations on being in the 800 range - I'm jealous, but from a creditor's standpoint most will tell you that anything over 720 is more fluff than substance. Protect yourself from fraud, especially since you don't know how they got the numbers, and if there is the possibility of obtaining new credit in your name, and worry about the scores second.
I agree with jlynn. You need to get the fraudulent activity stopped. And it is true that they can hold you liable for the amount if you don't take reasonable action to stop it (like changing the account).
If your concern is your credit score and reports, most issuers issue a new "account number", though the "history" of the closed account stays with the new account number. There will be a notation with the old account number that "card lost or stolen". I would advise that you have a greater risk financially by allowing the accounts to stay "open". You could be opening yourself to liability for charges made. As recommended, call back and explain your concerns (re: credit score), and explore all the options presented.
Actually no, a debit card (overall) is not safer. Many debit cards now offer a liability limit similar to credit cards, but many still do not. So, your liability is open to whatever they can get authorized for transactions. Some of the newer "cash cards" offer a bit more protection if lost or stolen. With a credit card you usually have a $50 limit for liability, and many issuers are waiving that.
And while they may put the money back in your account immediately, there is usually a time period while they investigate, and later they may again remove the money if they feel it was a legitimate charge. Also, if you use a debit card for something like hotel or rental car reservations, they will put a hold on your account (sometimes as much as twice the anticipated bill). In the case of a debit card, that freezes the amount in your account, and if you've written checks they may bounce. The bank will basically say "tough luck, pay the $39 per action overdraft fee" even if they don't return the items. I don't use debit cards at all.
Congratulations! That's really a nice score. As on average a good credit score is supposed to be between 700 - 800. As far as I know, nowadays the most common scoring method is FICO scores. These score, that is your credit card history is very important for companies which offer multiple loans and mortgages. And of course, the quantity of your credit card accounts can only increase your credit score if used wisely and carefully.
