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A closed account will still be included in your FICO score calculation.
Older, more established accounts boost your credit rating.
So closing an account – especially one you've had for a long time – could be detrimental to your credit health.
They want some extra protection for the privilege of "loaning" you a vehicle.
If that's the case, instead of pulling credit reports, why don't they simply ask debit card users for upfront deposits, just as they do with those who pay by cash or credit card?
We all know that making late payments or having credit card accounts in collections can hurt your credit scores.