4 ms·
Don't trust cancelling your card either. I closed my account at Capital One, paid the final balance, and six months later I noticed a steep drop in my credit sc
by strickjb9 2y ago
Don't trust cancelling your card either. I closed my account at Capital One, paid the final balance, and six months later I noticed a steep drop in my credit score. I had a $3 monthly charge that kept recurring even though I had closed my account.
Also, because my account was "closed," I didn't receive any statements notifying me that I was being charged. I only discovered this issue when my credit score dropped by 100 points.
- stavros 2y agoThe bank allowing a charge on a closed account is some bullshit.
- kbolino 2y agoClosing a credit line penalizes your credit score in general. It's why the standard recommendation is generally to leave the accounts open, forever. Another thing for the FTC to investigate/stop.
- thallium205 2y agoClosing a personal credit card, in my experience, temporarily drops the score a few points and then it goes back to normal. It's a myth promulgated by banks to keep accounts open.
- kbolino 2y agoIf so, that just raises the question: of what benefit is it to the banks to keep unused accounts open? The maintenance costs may be low, but they're still nonzero.
- thallium205 2y agoAsk Wells Fargo -> https://www.justice.gov/opa/pr/wells-fargo-agrees-pay-3-billion-resolve-criminal-and-civil-investigations-sales-practices https://www.justice.gov/opa/pr/wells-fargo-agrees-pay-3-bill...
- SoftTalker 2y agoAnd yet if you have a "dormant" checking or savings acccount, many banks will start charging you a monthly fee.