No Spending Limit Cards- Does closing hurt your credit?

[Daniel]

My first thoughts are that this can't hurt your credit that much because there is no credit line reported? Any thoughts?

[YOSEF]

You still are closing an account.

[Avid Reader]

Pretty sure it doesn't hurt. The only possibility of it hurting that I can think of is that once you put a balance on the card, that becomes the CL (at least on some cards like Citi I believe). So if you had a high balance of 15K, your CR may think you lost 15K of credit.

[AsherO]

Pretty sure it doesn't hurt. The only possibility of it hurting that I can think of is that once you put a balance on the card, that becomes the CL (at least on some cards like Citi I believe). So if you had a high balance of 15K, your CR may think you lost 15K of credit.

+1

It'll also hurt average account age if it was open for a long time.

[Dan]

+1

It'll also hurt average account age if it was open for a long time.

Do we know that for sure?
Accounts stay on your report for many years even if they're closed and I've read that even closed accounts on the report count toward the average age.

[scwam]

Do we know that for sure?
Accounts stay on your report for many years even if they're closed and I've read that even closed accounts on the report count toward the average age.

According to CK data I have on me and my mother,
both of our average ages dropped significantly shortly after
she closed out the USAA card that I was joint owner with her on.

[AsherO]

According to CK data I have on me and my mother,
both of our average ages dropped significantly shortly after
she closed out the USAA card that I was joint owner with her on.

It seems like it (possibly) depends how how the bank reports the card after it is closed.

[Dan]

Joint user might also affect things.
Anyone have any data about account age after closing a card they are primary on?

[Yellow]

Pretty sure it doesn't hurt. The only possibility of it hurting that I can think of is that once you put a balance on the card, that becomes the CL (at least on some cards like Citi I believe). So if you had a high balance of 15K, your CR may think you lost 15K of credit.

Interesting. For some reason my starwood  limit was not being reported but when I checked my cr the limit seems to be my highest balance which is like 1500

[Simonzx]

Joint user might also affect things.
Anyone have any data about account age after closing a card they are primary on?

I have a amex plat and two other CCs. The credit report only shows the credit limit of the other two CCs without the amex. Does that influence my credit ratio or something else?

[af725]

Is there , in fact ,  a spending limit to spending limit cards ?

[AsherO]

Is there , in fact ,  a spending limit to spending limit cards ?

Yes, but it isn't reported on your credit report.

[af725]

Yes, but it isn't reported on your credit report.

What Does that feature on AMEX that allows you to check if you can swipe an amount on "no limit cards" count as ?

An authorization ?

[AsherO]

What Does that feature on AMEX that allows you to check if you can swipe an amount on "no limit cards" count as ?

An authorization ?

No, an authorization would be initiated by a merchant. If you check spending ability on a charge card, Amex probably checks the amount you're requesting against you're available credit against the limit they have but they don't show you that limit or report in to credit bureaus. I imagine this limit is periodically adjusted based on your spending/payment history and possibly your credit.

[txtmax4]

Do we know that for sure?
Accounts stay on your report for many years even if they're closed and I've read that even closed accounts on the report count toward the average age.

The longest lingering question...
I'm working toward finding out the maskanah..

It seems like it (possibly) depends how how the bank reports the card after it is closed.

Really?
And what can be the instances that make it go one way or another?

[txtmax4]

Pretty sure it doesn't hurt. The only possibility of it hurting that I can think of is that once you put a balance on the card, that becomes the CL (at least on some cards like Citi I believe). So if you had a high balance of 15K, your CR may think you lost 15K of credit.

So essentially you're hurting your credit each time you pay your card...

[Avid Reader]

So essentially you're hurting your credit each time you pay your card...

How did you come to that conclusion?

[txtmax4]

How did you come to that conclusion?

Because, according to what you're saying, the balance is the credit limit, hence, whatever amount you pay the card will make that amount disappear from your balance, along with the same amount vanishing from the credit limit.

[Dan]

Because, according to what you're saying, the balance is the credit limit, hence, paying it lowers the credit limit.

The highest balance ever is the credit limit, not the current balance.

[Avid Reader]

Because, according to what you're saying, the balance is the credit limit, hence, paying it lowers the credit limit.

Let me clarify: For a card that is not reporting a credit limit, the highest balance you ever had becomes your credit limit (I know this the case by Citi). So if you once had a balance of 15K and now you have a balance of 4k, the credit report will still show as though you have a credit limit of 15k and you'll be way under 50% of your available credit utilization.

You can actually use this to your advantage by 'creating' a high CL on a card that is not reporting your CL by putting on a very high balance and then paying it right off.