Will Citi report negatively on my credit if I close my secured credit card early?
wakum6 asked:
I’ve had a secured credit card with Citi for a while now. It has a limit of $300 which I gave to them to put in a CD. I got this card to improve my credit rating but they haven’t reported on ny credit yet and it is a hassle having Citi as a credit card because I have USAA Bank. Will citi report negitivly because I close the account early? And what kind of penalties will I get for closing a CD early?
Dean
I’ve had a secured credit card with Citi for a while now. It has a limit of $300 which I gave to them to put in a CD. I got this card to improve my credit rating but they haven’t reported on ny credit yet and it is a hassle having Citi as a credit card because I have USAA Bank. Will citi report negitivly because I close the account early? And what kind of penalties will I get for closing a CD early?
Dean
Carlos
you may lose the deposit and yes it will report negatively as your credit limit to debt ratio would shrink
Natalie
I think you need a little more information about closing early.
If you have a $300 CD that is the security deposit for your secured credit card, you would need to ask what the penalty is to close it before the maturity date.
Closing a credit card that you have had opened for less than a year will not do much to your score. If you had the credit card for 3 years or more it might impact you more because longevity of accounts is a factor on your score, and closing old accounts can lower it.
If your debt to credit ratio is decent (i.e. you have credit elsewhere) the loss of this credit wont really impact you. 300 is not enough to cause a dramatic decrease if it’s closed.
Roland
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