Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Don't trust cancelling your card either. I closed my account at Capital One, paid the final balance, and six months later I noticed a steep drop in my credit score. I had a $3 monthly charge that kept recurring even though I had closed my account.

Also, because my account was "closed," I didn't receive any statements notifying me that I was being charged. I only discovered this issue when my credit score dropped by 100 points.



Closing a credit line penalizes your credit score in general. It's why the standard recommendation is generally to leave the accounts open, forever.

Another thing for the FTC to investigate/stop.


Closing a personal credit card, in my experience, temporarily drops the score a few points and then it goes back to normal. It's a myth promulgated by banks to keep accounts open.


If so, that just raises the question: of what benefit is it to the banks to keep unused accounts open? The maintenance costs may be low, but they're still nonzero.



And yet if you have a "dormant" checking or savings acccount, many banks will start charging you a monthly fee.


The bank allowing a charge on a closed account is some bullshit.




Consider applying for YC's Winter 2026 batch! Applications are open till Nov 10

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: