Thread: fico score-airline bankruptcy-house purchase?

I'm in the process of buying a house. I have an airline mileage awards credit card. The airline just went bankrupt and my 90,000 mileage points are worthless. The bank is canceling my airline credit card and giving me a new card with a new number. I'm wondering what this will do to my credit score because I haven't closed on the house yet. I know I'm not supposed to open/close charge accounts. If I accept the new card it will hurt my score and if I say I don't want the new card, that will hurt my score too. Does anybody have any ideas? What happens to a fico score in the middle of house buying when an airline credit card company goes bankrupt?

It will have no effect on your score. The cancellation is a result of nothing to do with your creditworthiness. It's no different than a card being canceled and replaced due to the card being lost or stolen, or an online merchant with your card on file having their systems hacked and card numbers stolen.

Actually, it won't hurt you if you don't accept the new one, but I would find out if you can hold off accepting until after you sign. And although the other card company is closing, you should probably find out if or what they will say on your Credit report, then you can see if it will affect your score. If the company closes but doesn't state that on the credit report, you don't have a problem. If it does then I don't think that this will affect your credit at all or much do to the fact that the store close do to them going out of business not you closing the account. Best thing you can do is call the company and ask questions. See what they say. I will try to also call the new issuing credit card company and see if you can hold off on signing for this card for awhile or even ask there credit department if you accept this card, how long will it be until you see if on your credit report?