Closing a secured credit account

[~krakatoa~ 27]

Hi,

I am closing my secured credit card from BOA, and have been offered a regular credit card. I was thinking of taking my business somewhere else since I wasn't too happy with them, after filing claims for fraud adjustment (I have had many idiotic conversations with their representatives and I am tired of dealing with them).

Anyways, my question is, does anyone know if a credit report/FICO score takes any hit upon closure of the credit card account, even if the card-holder was credit-worthy for the entire time he had the credit card? I don't plan to check my credit history soon since I have done this only a few months back. I am in the process of calling the credit bureau to get more info. I am hoping somebody here would know based on their experience.

I did reiterate to BOA that the closure be reported to the credit bureau as "requested by the consumer". This was done over the phone. Initally, I insisted doing it in writing but ended up doing it over the phone. However, I recorded the conversation and got the name of the rep who closed the account for future references.

Thanks.

~krakatoa

Edited May 13, 2008 by krakatoa

[BRIAN AND ISA 0]

Yes, it actually can decrease your credit score. Credit scores are based on several factors, one of which is length that the account has been open, balance versus credit limit, number of revolving accounts versus instalment accounts, etc.. I would keep it open so it shows as an active account and just use it once a month to buy dinner. The longer you have it open the more your score may increase.

[~krakatoa~ 27]

Thanks. I wished I could keep it open but...

More about why I am closing the cc acount...

I have to close it due to a third-party company who signed me up on some membership and keeps on charging my credit card, though I have never dealt with this merchant. I filed claims and fraud adjustment with BOA but they refused to credit me back since, according to them, they are not authorized to cancel a membership. I called the company responsible for these charges to "cancel" whatever they signed me up for and they said they did (3 months ago), but the charges are recurring each month up to current. I have talked with several BOA people including the Fraud Claims Dept. Manager and they are giving me nothing but incompetence.. I am tired of this.

I have other active accounts that would build my credit history (such as a car loan) and dept. stores CC.

I take it that the hit would be a momentary one. I can handle a 10-point hit since my score is 780 months ago. I'd take that over recurring charges to which I did not sign up for.

I just hope I'm on the right track with my decisions.

Edited May 13, 2008 by krakatoa

[~krakatoa~ 27]

I have to add that I did think about transferring the balance over to the new unsecured credit card but I'm afraid this problem would carry over to the new card..

[sus 70]

Contact the Better Business Bureau and the ATtorney General Consumer Protection Department of your state about the company that is charging you a membership = they will help you resolve that.

[~krakatoa~ 27]

Contact the Better Business Bureau and the ATtorney General Consumer Protection Department of your state about the company that is charging you a membership = they will help you resolve that.

Thanks, Sus. Prior to posting this, I did contact the Better Business Bureau. The alleged company doesn't seem to have a valid address (and their phone number sometimes gives us an automated answer) and right now, my case is still pending-unresolved..

I will keep on trying though. I mean there should be means to track this people. I strongly believe that we'll get down to that sooner, or later. But right now, I am exhausting everything I can do to put an end to this scammers.

Edited May 13, 2008 by krakatoa

[sus 70]

If it was an internet company, here is another place to report the fraud:

http://www.ic3.gov/

[~krakatoa~ 27]

I'd look into that. Thank you.

[Nutty 2]

Yes, even IF YOU DECIDE to close a credit card you do not use, it makes your FICO score drop. That is why it is better to be careful and open only credit cards you use. I got a few I never use, yet I don't want my FICO to drop to they are still active.

[~krakatoa~ 27]

Yesterday when I checked online, my BOA credit card account was already closed.

Earlier today, it was reopened and I was credited back the fees originally charged by that merchant in question. I still insist that that account be closed.

If ever I'll open a CC again (I'm thinking Dec this year), I'll get it from my credit union.

I have read other people's dissatisfaction with BOA, or banks in general, and now I can say it makes perfect sense.