Ramifications of closing my Wells Fargo cash secured credit card only 3 months after opening
Does closing a secured credit card hurt your credit?
Closing a secured credit card has the potential to hurt your score. But that’s not because it’s a secured card. You run the risk of a slight drop in your score when closing any credit card because it can make your credit history seem shorter and reduce the total amount of credit you have available.
How long before Wells Fargo secured card becomes unsecured?
Wells Fargo Secured Credit Cards can graduate to unsecured after the cardholder has demonstrated consistent positive payment history and the ability to pay. Some forum users report Wells Fargo Secured graduation after 1 or 2 years of having the account.
Do I get my money back if I close a secured credit card?
The bottom line
The truth is that secured credit cards are a great way to help consumers build credit, and as long as your account is in good standing, you’ll get your secured credit card security deposit back when you’ve closed the secured credit card or upgraded to one of your issuer’s unsecured credit cards.
What happens when you close your secured card?
Although secured cards typically have low credit limits, closing one will still decrease the amount of credit you have available. This will cause your credit utilization rate to slightly decrease and ding your credit score but only temporarily.
How do I cancel a secured credit card?
How to Close a Secured Credit Card
- Plan to pay it off. If you have an outstanding balance, pay it off. …
- Close the account. Depending on the issuer, you might be able to sign in to your account to close it. …
- Update other accounts. …
- Check your credit reports. …
- Destroy your card.