My old credit card from college finally got closed, score dropped 40 points

I had this card from 2012 when I was a sophomore at Ohio State. Limit was only $1,200 but it was my oldest account. Last week the bank closed it for inactivity since I hadn't used it in over 2 years. My score went from 762 to 722 overnight. I know closing the card myself probably would have been better, but I didn't think about it. Has anyone else had a bank shut down an old account on you like that? Did your score bounce back after a few months?

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stellac977d ago

The 40 point drop sounds harsh but it's actually pretty normal for losing your oldest account. That account was probably carrying a lot of your credit history weight, since it was from 2012. One thing though, you said closing it yourself would have been better, but that's not really true. Whether the bank closes it or you do, the score hit is basically the same because the account is gone either way. The real thing that matters now is your remaining accounts and their age. Your score should start climbing back in 2 to 3 months, especially if you keep your other cards active and pay them down.