Closing Accounts

[Harry00]

I recently received a notice from my bank that credit card (a card that I never requested, never activated, and chopped up immediately) would be
"closed" due to inactivity.

The other day, I received a card from another bank. I did have an active card with them years ago, but paid off several years ago. I have received "junk" mail from them from time to time, but now they actually sent me a card. When I called and inquired why they sent me the card, they
stated that even though my account was "inactive", it still was not "closed."

They asked me if I wanted to "close" the account, and I said I'd get back to them.

I've heard that "closing" accounts can effect your credit score.
I would like to know if having two accounts "closed" within a short span of time will effect me adversely.

Any advice?

[Seeker]

Originally Posted by Harry00

I recently received a notice from my bank that credit card (a card that I never requested, never activated, and chopped up immediately) would be
"closed" due to inactivity.

The other day, I received a card from another bank. I did have an active card with them years ago, but paid off several years ago. I have received "junk" mail from them from time to time, but now they actually sent me a card. When I called and inquired why they sent me the card, they
stated that even though my account was "inactive", it still was not "closed."

They asked me if I wanted to "close" the account, and I said I'd get back to them.

I've heard that "closing" accounts can effect your credit score.
I would like to know if having two accounts "closed" within a short span of time will effect me adversely.

Any advice?

It does not sound like you use either of these cards.

The one was closed for inactivity and you never used, is totally out of the picture. You haven't gain nor lost anything from that -- there's no history of promises (for repayment) made and kept.

I believe it's the same with the second.

Your "credit score" is based off a number of different criteria, in fact different companies have different criteria.

Credit scores can be pulled and looked at for various different situations as well... but ultimately... you don't usually need a good credit score except for major things in life (buying a house, buying a car, getting insurance).

You gain a good credit "score" essentially by making promises to pay (using the credit or a portion of the credit) and then keeping that promise to pay, by indeed paying. Hopefully by PIF (paying-in-full) each and every month and never spending beyond your means to pay back.

[Seeker]

Okay, taking a little bit of the above back.

When accounts are closed, your total credit availability goes down. That may either make your credit score go up, or down depending on your total credit card utilization.

You're only talking about two credit cards here. Do you actually use other credit cards regularly? Do you know your credit score and whether it's "average" or "good" or "excellent" or ?

[Harry00]

Originally Posted by Seeker

Okay, taking a little bit of the above back.

When accounts are closed, your total credit availability goes down. That may either make your credit score go up, or down depending on your total credit card utilization.

You're only talking about two credit cards here. Do you actually use other credit cards regularly? Do you know your credit score and whether it's "average" or "good" or "excellent" or ?

I have two others I am paying down. I don't use either of them anymore.
One of them actually raised my limit several months after I used it.

I haven't checked lately, but last time my score was checked, it was very good.

I figured it would probably "go up or down." That's how nuts this stuff is.

Frankly, I'm a little afraid of the "junk" mail they send me. I know there is a site where you can sign up not to have this stuff sent anymore, but I know that if I still technically have an account with them, they can send me all the "stuff" they want.

Mail delivery is not too reliable around here. I've actually received other people's statements in my mail. People that lived blocks away.

[parafly]

If you close the account, your credit score will most likely go down for the time being.

Total credit limit as well as average account age are two factors that affect your credit score. Your credit score will be affected negatively...the extent depends on how much closing this account will bring down your total credit limit and average age of accounts.

[kork13]

Harry, the other factor here is if you're in a position right now that you really need to worry about your credit score.... are you looking to buy a house, car, or for some other reason need your credit score to be as high as possible right now? If not, then I wouldn't worry about it. Closing a card or two would most likely only have a slight impact on your score, which would recover completely within a year or so. So unless you're doing something requiring as high a score as possible, just close them and be done with them.

[tradelines]

I would advice not to close the accounts if you don't have to.

You want to have a balanced credit use/credit limit ratio and having $0 balance accounts open may help do that if you have other with balance.

Originally Posted by Harry00

I recently received a notice from my bank that credit card (a card that I never requested, never activated, and chopped up immediately) would be
"closed" due to inactivity.

The other day, I received a card from another bank. I did have an active card with them years ago, but paid off several years ago. I have received "junk" mail from them from time to time, but now they actually sent me a card. When I called and inquired why they sent me the card, they
stated that even though my account was "inactive", it still was not "closed."

They asked me if I wanted to "close" the account, and I said I'd get back to them.

I've heard that "closing" accounts can effect your credit score.
I would like to know if having two accounts "closed" within a short span of time will effect me adversely.

Any advice?