Comments on: How Do You Improve Your Credit Score When Credit Companies Close Your Account?

By: Patrick

Patrick — Fri, 13 Nov 2009 20:07:18 +0000

Sally, It sounds like you are doing the right thing in regard to your credit score. Your score will improve when you make on time payments every month, and as the amount of debt you have decreases. Getting a new credit card that doesn't charge a monthly fee is a great idea. One of the best cards right now is the Chase Freedom, which offers a 0% balance transfer (you can transfer your current credit card debt to that card and pay no interest). It also offers $50 cash back after the first purchase. You can read more about it here: Chase Freedom Rewards Card Review.

By: sallymuniz1221

sallymuniz1221 — Fri, 13 Nov 2009 20:01:19 +0000

I am 19 and i am trying to work on my credit I have a student loan that I pay on and Im never late. I also have a credit card that we use to buy things has a 500 limit and we always pay the balance off in full never let it carry over its with First Premier Bank when I was 18 I had bad credit because I owed a bank 500 but I paid it off like 5 months ago and got the credit card to help my credit which I have no late payments for or past due balances the apr is 24 percent and it charges a fee of 11 dollars a month and 7 dollars to pay on it. I was thinking of getting another credit card with no monthly fee and not such a high apr and wanting to pay this one off and close it does this sound okey to do I am trying to improve it but I dont really need it improved soon I am going to school and a stay at home mom and my husbands in the service but i would like good credit for when i decide to work and mabey get things under my name I also recently got us cell phones under my name I heard this could help if you pay on time all the time is that true and also i was wonder does the student loan help my credit or make it look bad once again I always pay everything on time no past due amounts on the credit card or student loan but i would like to know if it would be ok to close the credit card i have to get a better one thanks

By: Nat

Nat — Sat, 08 Aug 2009 22:15:58 +0000

I was really glad to find this site. The article AND the comments were really, really helpful to me. I bought a home in March 2008 and really hate he neighborhood (even though we rented here for 1 yr before buying), so we are putting the home back on the market and want to rent.

When we bought the home my score was 622, now it is 563. I had some negative past due in Nov 2008 and have closed all three of my credit cards. My total credit debt is only about $1300. I really want to move but I am worried that I won’t be able to find someone who wants to rent to me b/c of my score. I am glad to hear commentors say not to focus so much on the FICO. My sister tried to tell me the same. But in this country we are slaves to that number. I don’t want any loans and frankly I don’t want anymore credit cards and I don’t want to buy another home either.

I just wanted to say thanks for the info. It is a relief to hear someone who works at a bank admit that creditors look at the whole report b/c my trades look good. I have more than 20 positive paid accounts (although most are paid off and not active) for almost a year and only 1 collection for $67 (medical), which I didn’t know I had. My balance on my car loan is only $430.

My DTI (debt to income) is 26, so we are liquid, so I am hoping that is what will be looked at rather than soley the FICO.

By: Patrick

Patrick — Tue, 04 Aug 2009 22:45:01 +0000

Mary, As long as you pay your bill, it won’t be negative. The account closure may affect your credit score because your average age of credit will change, as will your amount of available credit. But it is nearly impossible to tell how much it will affect your score.

By: Mary

Mary — Tue, 04 Aug 2009 21:27:15 +0000

Just had Bank Of America close my account,this account was never late ,always paid early,how will this effect my credit,does it go on the negotive side,or will it still show paid as agreed.

By: Patrick

Patrick — Tue, 28 Jul 2009 17:07:19 +0000

Dan, Have you considered a 0% balance transfer credit card offer? With these offers, you can transfer your current debt to a new credit card at zero percent so you could pay it off more quickly. That way you wouldn't take a hit on your credit score. If you qualify, you can transfer the balance from both cards to a zero percent card and direct all your payments to the one bill. Just be sure not to add to the debt you currently have, and it should work out great.

By: Dan

Dan — Tue, 28 Jul 2009 15:53:20 +0000

I have two credit cards. One with Citibank and one with Chase. I have quit using them and am working with paying them off each has about a $6000 balance. They both sent notices that they were going to raise rates on previous purchases unless I closed the accounts. The rates were going to go from 11% to 23.9%. I own my home and do not plan to use any credit except maybe for a car loan in the next few years. Would it be better to take a hit on my credit score to avoid the higher interest charges and make it easier to pay them off?

By: Patrick

Patrick — Sun, 28 Jun 2009 17:13:30 +0000

Cyanuk, I don't know what to say - other than try to continue to negotiate with them. But that may be difficult right now because the credit card companies have been hurting as more and more customers default on their payments. You may mention how long you have been a customer and that closing your account will not only hurt your credit score but lose them a long time customer. You may also wish to look at zero percent balance transfer credit card offers to save money. Here is more information about how they work: How to do a 0% Balance Transfer Offer.

By: Cyanuk

Cyanuk — Sun, 28 Jun 2009 04:40:35 +0000

I just got a notice in the mail from Chase on a card i have a 23,900.00 limit and have paid it down to 20,000.00 by paying 500.00 a month. They said they are going up on my minimum payments from 2% to 5%! I cant pay 1000.00 a month! So I called em and they are going to close the account. I have been diligently trying to improve my FICO score from 689 to over 720 to refinance my house. Now, i dont know what this is going to do! It was one of my older cards too, but has been a long time since I used it.

By: Patrick

Patrick — Mon, 01 Jun 2009 01:09:31 +0000

Tony: From what I understand that is a problem that affects people crossing many borders, not just immigrants to the US. For example, I’ve heard it is extremely difficult for new residents to get a bank account in France, much less get access to credit. I’ve never tried though, so I can’t say for certain. It is unfortunate that red tape gets in the way of things like this.