I've seen some interesting posts on the scoring results of closing a Providian account and with their new round of letters and unhappy customers, this is timely. I'd be very interested to hear what impact closing this account has had for those of you who have done so. We've been keeping ours for ratios because the CL is fairly decent ($8600) and there is no annual fee. It is our oldest bank card at just under 4 years. But if there is evidence that it is hurting our scores because it is subprime, then it might be better to close it. I would really appreciate hearing from as many of you as possible. How did closing it impact YOUR scores?? DemPooches
I've never heard of a sub-prime account hurting your score. Hopefully that's not the case, since I have a few sub-prime tradelines (all positive, but reporting nonetheless). I got the now-infamous letter from Providian TODAY, stating that my account will be closed TOMORROW. Just to make sure, I got a manager on the phone immediately to close the account. She assured me that all accounts will list as being "closed at customer's request". My account had a $1k CL, and will show a zero balance, so I don't think it will affect the score, if at all. What cracks me up is that they based their decision on a TU report, and they haven't pulled TU since last November... It's odd though, my other Providian card has a $5k limit. It's over 2 years old, with a perfect payment history. At this point, I'm afraid to use it, thinking that any day I could open ANOTHER letter from them stating that the account will be closed. Fortunately I have other good cards...
Was your account up for renewal?? (your current card was expiring?) Mine expires the end of this month. I decided to close it and called today after reading all the posts on these "letters of closure" and they told me that I have NO annual fee. I was like "huh???" anyway, she suggested that I leave it open to help my history. Then I asked when I would get another card and she said "you get it a month before your card expires.." well here it is the middle of the month... I have a feeling I'm getting one of these letters any day now... I hope your request to have it state "closed by consumer" works. I may be doing the exact same thing...Part of me wants to call back and just close it and part of me wants to see what the heck is going on...my gut is telling me to just be done with it...I'll probably be calling back tomorrow, but please keep us posted!! Newstdt
The account I just closed was renewed in July. My other card is good through 09/04 - but let's see what happens with that one! Be sure to read my next post (I'm writing it now) about Providian>>Merrick. Interesting!
My score dropped 40 points when my card number was stolen and i closed the card. I must say that that card was my oldest account though.
Considering this is your oldest account, it could have an impact on your credit score, because it would lower the average age of open accounts. If it wasn't your oldest account, I don't think it would make much of a difference unless you had high balance on other cards, and then it could be detrimental as far as your balance ratios are concerned. If you don't like the card and don't want to use it, you could just use the infamous "sock drawer" method (copyright GEORGE). If you just don't want it anymore and fear them closing it out, go ahead and close it. I don't think it will lower your score dramatically if your credit is already good, but you never know with the infamous "jumping score" systems we have today. Good luck, and if you need any more advice, just ask.
