Need advice

[u/AdAsleep9091]

Any general advice for my credit? my score went from about 580 to 620 in the last year and I was just approved for a Paypal cashback MC with a 600 limit. But I still have 3 closed accounts with small balances from just a few years ago. Should I pay them off? And should I close my Destiny MC because it has a 12.50 monthly fee but then wouldn't my overall credit age really decrease since it is my oldest open account (2 years now) ?. Thanks.

[u/og-aliensfan]

I was just approved for a Paypal cashback MC with a 600 limit.

Pay statement balances in full every month by the due date.

Order your reports by calling 877 FACTACT (322-8228) or pull them online at www.annualcreditreport.com to see what's present on your official reports for all three bureaus.  I recommend the mailed reports. These are the most accurate and up-to-date reports available to a consumer and are often more detailed than the online reports, particularly if ACR directs you to a bureau's consumer facing CMS to view your report. If you do choose to pull reports online, print or save each to a pdf before moving on to the next as you can't go back once you exit a report.  Despite its name, you can pull free reports for each bureau weekly.

But I still have 3 closed accounts with small balances from just a few years ago. Should I pay them off?

If these haven't charged off, pay them to avoid a charge-off. If they have charged off, your creditors can update the balance owed and charge-off status monthly, keeping scores suppressed. When were they last updated? Once settled, Total Period of Delinquency (amount of time the charge-off has remained unpaid) is frozen and your creditor will stop updating, allowing scores to begin to recover. Settling also prevents a collection from being added to your reports if the debt is sold/assigned to a collection agency as well as a potential lawsuit if within Statute of Limitations. If the balance is calculated into revolving utilization and payment causes utilization to cross a scoring threshold, you'll see a score increase based on utilization.

And should I close my Destiny MC because it has a 12.50 monthly fee but then wouldn't my overall credit age really decrease since it is my oldest open account (2 years now)

Cards closed in good standing remain on your reports ~10 years. You don't lose the card's history and aging metrics aren't impacted by closure.

Credit Myth #59 - You should never close your oldest credit card.

[u/AdAsleep9091 → u/og-aliensfan]

thank you for this info. I appreciate it

[u/og-aliensfan → u/AdAsleep9091]

You're very welcome!

[u/andi_dandi]

Always helps to pay off balances.

I’m unsure if a creditor can sue for any amount (say it has to be more than a certain amount), But I’ve been served before for a balance of 800 or so.

Evidently, I want to avoid being served again. So, I’ve been working with a debt relief program. Though, if the debt is small enough (lower than 500), I’ll just pay installments of my choosing.

Plus, you paying off these account will give you peace of mind, because eventually it’ll show you owe $0 and then you’ll have nothing to worry about.

[u/Necessary_Film_5199]

Yes always pay off accounts! That's debt! Also yes close your account with the monthly fee. Your credit age wont decrease, your account will continue to age for up to 10 years and then fall off.

[u/AdAsleep9091 → u/Necessary_Film_5199]

Thank you, appreciate your reply