I was at the bank in Denver to get a car loan and the loan officer said something that really surprised me

I went in thinking my score was solid, around 720, and I'd get a good rate. The loan officer pulled my report and pointed out something I never noticed. He said I had a credit card from a store I opened back in college, with a $300 limit, that I hadn't used in over five years. He told me the bank that issued it closed the account last month because it was inactive. He said that dropping an old account like that, even with a small limit, can hurt your average account age and knock points off your score. I had no idea that could happen. I was so focused on paying my main cards on time that I forgot about that old card. Has anyone else had a score drop from an old, unused account being closed by the lender?

2 comments

2 Comments

the_betty27d ago

That whole "knock points off your score" thing seems overblown. A single closed account, especially a tiny one, is not a disaster. Your score might dip a few points for a month, maybe. But if your main cards are in good shape, it will bounce back fast. People stress way too much about tiny credit score moves.

robertb3027d ago

Exactly. It's like worrying about a single raindrop when your roof is fine. The whole system is built to handle small changes without falling apart.