I have a credit card that's been closed, it still has a balance I'm paying off. I turned it off in hopes of paying it off faster, but it's going slow. Now I want to lower the interest rate, but the credit card company said I cannot do that unless I turn it back on. We are currently selling our house, and I don't want anything that will negatively affect my credit score for the new home we will buy, so I'm hesistant, but I would really like to get a lower rate too. Is that not true, should I just keep asking for supervisors so I can get it lowered while it's still turned off?
2006-07-24 09:52:40 · 5 answers · asked by Stephanie 1 in Business & Finance ➔ Credit
When I reactivated a card it didn't have an impact on my scores. It had a 0 balance and was an older card. It was still reporting on my credit reports, so reactivating it really didn't do anything. Plus the card company did not pull my reports when they reactivated it.
I don't know how it would have affected my scores if it showed a balance that was negative, had been off of my reports. If the cc company had pulled a hard inq, it would have dropped my scores a bit.
If your card is still reporting, as long as the credit card company shows it as a positive account and does not pull a hard inquiry, I doubt that it would affect your scores.
If you are planning on purchasing a new home within the next 6 months, or you are just hesitant on reactivating it, you might wait until after you buy your home to reactivate it.
2006-07-24 12:52:21 · answer #1 · answered by echo 7 · 0⤊ 0⤋
I have seen several people respond that reactivating a credit card will lower your score. But after a lot of research I can find no evidence to support this. Naturally, the people who responded with this advice never give a source for their information, so I don't know if it's true.
As long as you did not have any overdue balance on your card I see no reason why it would hurt your credit.
2006-07-24 10:20:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
"Closing" credit card accounts do drop your score, not opening them. However, depending on what else is on your credit it may impact it one way or another (postively or negatively). If it is reporting "Pays on time" it will add a postive note for you. However, if it is showing some "rolling lates" then I advise to leave it be until you obtain your new home if you are going on the loan. It is true, that you would need the card activated for them to change any terms. You need to look at the big picture of your credit report to determine your solution.
2006-07-24 12:58:20 · answer #3 · answered by Mortgage Planner 1 · 0⤊ 0⤋
This is just a guess. If you still own them money, your credit report probably still shows this as an open account. You just can't charge any more. If that is true, re-opening the card shouldn't affect your credit score at all.
2006-07-24 12:51:12 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
wait until after you get the house.
2006-07-24 09:56:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋