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Question By
jjohn436

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The joint holder of my credit card closed my account with a balance!!
Ok I have worked SO hard on my credit the past year so I can get approved for a mortgage. My score was a lousy 460 and now it's at a fair 670. I know I still have a little work to do.. well our mortgage lender who is very helpful told us that being authorized users on credit cards wouldn't get you approved and to get removed if you are one in someone's cards. Well in my stupidity, I thought I was an authorized user on my grandmas card. So I called her and asked her if she could get me removed as an authorized user and that I would continue to pay the balance. Well it turns out I was a joint account holder and she thought it was better to just cancel the whole entire account with a balance!!!!!!! She feels bad i don't think she reazlized what she did wrong until she did it. It was my only credit card (only credit utilization I had) and was about a year old. I do have student loans in good standing that are around 5 years old. How bad is this going to kill my credit? I'm sick to my stomach!!!

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This is not as bad as it seems to you. I don't think that the lender will actually close the card when there is a balance due, so I am not sure that the account was actually closed. Even if the account did get closed, it is NOT a negative on your report, providing that you don't stop paying the card. I would advise you to get your own credit card that is solely in your name, get a Secured card if need be. Be as patient as you can to optimize your credit reports and save up money for the home purchase, haste will cost you a lot of money. You will be ok with this.

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jjohn436

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thank you for your response! I dont know what I should do. Wells Fargo doesnt report to credit bureas until the 22nd. I called and they told me my account is closed but I can still make payments towards the card and that I have no available credit left now. Which makes me think my score will drop drasticaly next month. Would paying most or in full before it's reported help to minimize the hit its going to take? Every credit simulator I have done makes it look like my score is going down almost 40 points

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Your credit will take a hit from losing the account, but what I am saying is to get a new card opened in your name, even if it has to be Secured, then that will minimize the damage. Of course you will get dinged for a hard inquiry and lowering the average age of your accounts, but the ding from having no accounts reporting can be fixed by getting another card. Make sure you get the closed card paid off as quickly as you can.

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Thanks so much for your replies! I forgot to mention that I have a student loan in good standing (5 years old) . My credit card was only a year old making my average credit age younger than the 5 years. I had 2300 out of 4000 dollars used on this credit card that my gma closed and I just paid it off in full this morning. So my total debt is going to be $2300 less now. Also wouldn't my average credit age go up since this card is actually pulling the age down? I am almost thinking my score may Just stay around the same or even go up. What do you think? 

Reply by
jjohn436

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Only thing I'm really concerned about is not having any credit utilization/revolving counts. I have a student loan that has some age on it which helps me out a little. 

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jjohn436

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I guess my question is.... with an established history before my card with my student loans (4 years old, my credit card was only a year old), my overall debt balance going down by 2300$ and my revolving credit limit going to 0 but also my balance is 0. Should my score go up or down? It almost seems my good outweighs the bad

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