Question
The annual fee ($60) showed up this month on a UA Visa. Not wanting to re-up for another year, I called to cancel. No hassle to do so, but the phone rep cautioned that it would be reported I had canceled the card less than 24 months after the account was opened, saying this could have a negative impact on my credit rating. For a quick second I did consider keeping it as a no-fee account, but then told him to go ahead and close it out completely.
I am not greatly concerned, but still curious - anything to this 24 month detail? I thought the number of credit accounts open and amounts drawn against credit lines would impact credit scores, but could closing out paid up accounts have any negative consequences?
Answer
The annual fee ($60) showed up this month on a UA Visa. Not wanting to re-up for another year, I called to cancel. No hassle to do so, but the phone rep cautioned that it would be reported I had canceled the card less than 24 months after the account was opened, saying this could have a negative impact on my credit rating. For a quick second I did consider keeping it as a no-fee account, but then told him to go ahead and close it out completely.
I am not greatly concerned, but still curious - anything to this 24 month detail? I thought the number of credit accounts open and amounts drawn against credit lines would impact credit scores, but could closing out paid up accounts have any negative consequences?
Probably just a scare tactic. If you have stellar credit, closing an account in 24, or even 12, months negligibly affects your score.
Answer
Probably just a scare tactic. If you have stellar credit, closing an account in 24, or even 12, months negligibly affects your score.
C'mon, these banking institutions wouldn't knowingly mislead us, would they?
Answer
C'mon, these banking institutions wouldn't knowingly mislead us, would they?
It's bull.