kbean Posted October 23, 2004 Report Share Posted October 23, 2004 I had a first premier card for 2 years. But the 6 dollar monthly fee got to me, and when the annual fee was coming close, I cancelled the card. I still make monthly payments on the account, but I'm curious if that has any affect on my score since the account is closed? Link to comment Share on other sites More sharing options...
Guest jeeptravel Posted October 24, 2004 Report Share Posted October 24, 2004 It appears the FAKO score is generated based solely on open accounts. This from my creditkeeper analysis of my 3in1 daily report:"Credit usage : On average, you are using 4% of the credit limit on your revolving account(s).This only includes open accounts for which the credit limit is reported.This is making your score higher. High usage (such as balances above 50% of the credit limit) is usually considered negative, because lenders worry that you may be using more credit than you can reasonably afford to repay. Being "maxed out" or overlimit on a credit card (when your balance is close to, or above, the credit limit) is especially negative. The more accounts in this situation, the more it affects your score. Note that in some cases, such as for very high credit scores, as little as 20% usage may have a negative impact, although minor. Low usage, on the other hand, is usually considered positive because it provides lenders with information on how you use credit. It also shows that you do not need to use all of the credit available to you."At least it's not hurting your score.-JT Link to comment Share on other sites More sharing options...
nevermore Posted October 24, 2004 Report Share Posted October 24, 2004 I believe it stills effects your score but probably not your utilization (a portion of your score). Link to comment Share on other sites More sharing options...
kbean Posted October 24, 2004 Author Report Share Posted October 24, 2004 I opened a chase card, and my score went up. But the limit was only 300, and after the first monthl, I'm over my limit. My score dropped. So I'm wondering if I should just close it since the interest rate is 19.74%. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted October 24, 2004 Report Share Posted October 24, 2004 Pay off 200 on it and don't use it for a month or so and your score should rise. If you do close it, make sure you ask them-in writing- to report "CLosed at consumer's request". You don't want chase ( and t hey will!) to make it look like they froze you out. Link to comment Share on other sites More sharing options...
kbean Posted October 24, 2004 Author Report Share Posted October 24, 2004 thanks, good idea. union plus did that to my fiance. he was super close to his limit and made a large payment that didn't credit his account for several months due to a an accounting error.So that made his "high balance" go up to 1,450 dollars or something, and his limit was only 1,200. After they credited him his payment and all of their crazy fees, everything was okay and he closed the account because he was so mad. Of course now it's listed closed at credit grantor's request, with a super 'high balance'. The balance is low now, but it still looks like he went way over his limit at one time.I hate credit cards. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted October 27, 2004 Report Share Posted October 27, 2004 He might be able to get that fixed. I had luck with Citi on a Citgo card. I used it for two months, then closed it after they posted my payment late and hit me with a $25 late fee and such. I sent a goodwill letter asking them to show it closed at my request ( I had done it orally, which is chancy) and remove the negative info. They did it for me. Link to comment Share on other sites More sharing options...
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