Originally Posted by
chaser123
I do not believe it matters whether you closed the card or the issuer closed the card, both are negative in the FICO formula but neither is worse. It is very bad if the closed by issuer (or closed by customer) is also tagged with late payments or write offs.
With all respect, I think the above statement is absolutely incorrect. Cards being closed isn't a negative factor. Cards are closed by one's initiation all the time. Likewise, cards get closed by the issuer for non-use all the time. I have over an 800 FICO score and have plenty of accounts I closed or the issuer closed through inactivity.
Matter of point, I just closed 5 CC accounts (out of 23) because I wasn't using them anymore and my FICO score went up after that.
What really counts is your credit utilization, not who closed the cards as long as all payments are historically on time.