maggsmaggs Posted July 18, 2016 Share Posted July 18, 2016 (edited) Here's the backstory, I open up a credit account with Wells Fargo to finance an engagement ring (for the interest-free financing). I paid off the ring before the interest-free financing time period expired, so now I have this account with Wells Fargo and this line of credit I do not and will not use. In the fine print of the terms, I noticed that Wells Fargo will close the account after 18 months of no activity. Should I just close the account myself now and take the credit score hit now (not looking for any major purchases in next 12-18 months)? Or should I let Wells Fargo do it in 18 months' time? Does either option more negatively affect the credit score? Or it is all about timing? Edited July 18, 2016 by maggsmaggs Quote Link to comment Share on other sites More sharing options...
pettie4sox Posted July 18, 2016 Share Posted July 18, 2016 DO NOT CLOSE IT! You will take a hit on your credit score. I know because I have done this before. Quote Link to comment Share on other sites More sharing options...
maggsmaggs Posted July 18, 2016 Author Share Posted July 18, 2016 (edited) QUOTE (Steve9347 @ Jul 18, 2016 -> 12:27 PM) Leave it open. I closed an account I no longer had use for at $13k line and it dinged my score 100 points. F*cking ridiculous. I should have just left it open. I hate hate hate being in the 700's now. QUOTE (pettie4sox @ Jul 18, 2016 -> 12:31 PM) DO NOT CLOSE IT! You will take a hit on your credit score. I know because I have done this before. So let Wells Fargo close the account in 18 months? Won't that ding my credit score too? I hate the whole system... Edited July 18, 2016 by maggsmaggs Quote Link to comment Share on other sites More sharing options...
Iwritecode Posted July 18, 2016 Share Posted July 18, 2016 There are a ton of factors that go into your credit score. Debt vs. available credit. Length of credit history, late payments and even how many different types of credit you have (loans, major credit cards, store credit cards...) When you close an account it raises your debt vs available credit so it will ding your credit a little but you should be able to build it back up over time. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted July 18, 2016 Share Posted July 18, 2016 The question is not whether you're looking at any major purchases in 12-18 months, it's whether you're thinking of any in 18-36 months. If you want to close the account and aren't looking at any major purchases right now, then there's little harm in doing so as your score will recover reasonably quickly. If you're looking at something 24 months from now and you wait to close the account until 18 months from now, then it will have hit you right before that purchase. Quote Link to comment Share on other sites More sharing options...
bmags Posted July 18, 2016 Share Posted July 18, 2016 Spend the bare minimum, keep it open. Quote Link to comment Share on other sites More sharing options...
pettie4sox Posted July 18, 2016 Share Posted July 18, 2016 QUOTE (bmags @ Jul 18, 2016 -> 01:53 PM) Spend the bare minimum, keep it open. This is the best strategy. If it doesn't cost anything to keep it open, just make some simple purchase, pay it off, and repeat. Quote Link to comment Share on other sites More sharing options...
maggsmaggs Posted July 19, 2016 Author Share Posted July 19, 2016 The card has no annual fee so I'm just going to do the small purchases every so often route. Thanks for the input! Quote Link to comment Share on other sites More sharing options...
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