Closing a card after paying off the balance

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gpmabob99
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Closing a card after paying off the balance

Postby gpmabob99 » Tue Jul 22, 2014 11:01 pm

Hi there,

My issue is a bit unique. Unbeknownst to me, my mother opened a credit card with Citi in both our names using my social security number. This was because her credit is deplorable and mine is in the 730s. She maxed it out soon after and has been paying the monthly minimum balance ever since. There is a grace period for the interest as it is a new card.

I recently learned of this when checking my credit report, and to spare you the tale of the aftermath for my being infuriated, I have no choice but to pay off the balance before the grace period runs out and negatively affects my credit score.

My question to you is, as I never wanted this card to begin with, after paying it to zero and closing it, will that affect my score? I've heard it said that closing a card erases your credit history with that product to some extent, which honestly is exactly what I'd like to have happen with this card. I hate the idea of having a maxed out card in my report, and would like that history erased once I pay it down and close it.

Any suggestions or ideas to help alleviate some of the anxiety this whole situation has caused me?
Credit Lines:

Wells Fargo Platinum Rewards Visa 4.8k 6/09)
CapitalOne Platinum MasterCard $1000 (2/10)
American Express Green Card NPSL (11/12)
Wells Fargo Personal Line of Credit 5k (6/12)


supercoolman
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Postby supercoolman » Wed Jul 23, 2014 12:56 am

how old are you? how can a bank open a CC on your name without your presence and permission?

MemberSince99
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Postby MemberSince99 » Wed Jul 23, 2014 7:08 am

I find that copious amounts of alcohol tend to help with anxiety.

rockyrock
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Postby rockyrock » Wed Jul 23, 2014 8:18 am

Looking at your other limits my guess would be that high utilization from that other card being max'd out would hurt your score the most. Paying it off took care of that though.

Any affect on your score from closing the card will be minor and temporary, I wouldn't worry about it. It will be on your history for the next ten years though showing it was once max'd out, paid in full, and closed by you. Nothing really bad with all that.

Unless you have your rogue family member under control you may want to put a freeze on you credit so no new accounts can be opened. As long as you aren't planning to apply for a mortgage or car loan soon you should be okay.

Of course YMMV. Good luck.
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takeshi
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Postby takeshi » Wed Jul 23, 2014 10:38 am

gpmabob99 wrote:My question to you is, as I never wanted this card to begin with, after paying it to zero and closing it, will that affect my score? I've heard it said that closing a card erases your credit history with that product to some extent, which honestly is exactly what I'd like to have happen with this card. I hate the idea of having a maxed out card in my report, and would like that history erased once I pay it down and close it.

Closing a card immediately impacts utilization. It does not immediately impact AAoA or remove the history of the account from your reports. The account will continue to show up on reports until it falls off which is typically about 10 years. You're probably better off with whatever impact to utilization versus having a maxed card.



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