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Question By
kbehne16

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Should I close my Jared line of credit?
Hi friends! I'm preparing to purchase a home with my husband in the next year. I have good scores (774 TransUnion/763 Equifax). I just paid off my car and carry no debt. I have 2 credit cards I use regularly but pay the balance in full each month. I have a line of credit through Jared Jewelry that is $10,000 from purchasing my wedding band 2 years ago (which, ironically only cost me $1,000). That has been long paid off, and I have never utilized that line of credit since. Should I keep it open to show lower utilization of credit or close it and wait out the next year for my score to rebuild? I'm worried they will stop reporting since I haven't used it and it will negatively affect my score. Any help is welcome! Thank you!

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Leave it alone. Losing ten grand worth of credit lines would hurt. Hopefully they will let the line open for a while. Closed by you VS. closed by them due to non-use is really not different. If they close it due to non-use that is not a negative thing.

Reply by
CreditCrouton

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Never close a line of credit, let the company close it for lack of use. As long as it is open without a balance it will continue to report to credit bureaus as current thus helping your credit. If the open line of credit is tempting you then close it, your credit score is high enough to absorb the impact.  

Reply by
kbehne16

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Thank you! I appreciate your explanation. :) 

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