If I receive a card- and close it within a month or two (after paying off any balance) how does it effect my score?
Well according to Fair Isaac. Closing an unused account that doesnâ??t have a balance wonâ??t really help your score. However, from what I have read here, if you close an account in less than 1 year it will actually tend to have a negative effect. This may be still due to the new account listing, and not necessarily from closing it, (the account will not "age" and therefore may retain the negative effects from the new listing) not sure. So, yes, I would put it in the sock drawer (unless there are monthly/yearly fees) for a year before closing it. If there are fees, find out if cancelling it will cancel the fees (they may be billable even if you close the account). I would not want a card in my sock drawer that costs me money...my socks aren't worth the prestige. Also, socks usually don't buy things so you should be safe...though I think George's socks go out on binges. -Peace, Dave
LOL ... hey i could use some of the stuff in George's sock drawer (and that's not a foot fetish reference it's strange - I read about a year ago on my Transunion credit analysis that closing newer cards could help raise your score. so I closed a card i had for four months (paid off balance paid first) and i don't think it affected my score one way or the other.
NO, they don't go on binges... But I think they are EATING the lint...or they are messing around...one of them looks pregnant...(card)
Here is a quote from the FTC: http://www.ftc.gov/os/2000/09/creditscoring.htm Closing an account or missing a credit card payment may affect a consumer's credit bureau score, but so may the simple passage of time. As time passes, the length of the consumer's credit history increases. A longer credit history may improve a consumer's credit score. It also may cause the significance of any late payments to decrease, which in turn may favorably affect the consumer's credit score. Credit scoring models are based on a complex interrelationships of factors. For example, the optimal number of credit cards one should own to maximize a credit score will depend on the circumstances of a particular consumer. Thus, it may be beneficial for one consumer to close some credit accounts, but, for another consumer, closing accounts and consolidating debt may have a negative effect on other factors, such as credit utilization (that is, the amount of debt outstanding compared to available credit). -Peace, Dave PS George's socks need an EPT test LOL
Love your highlight-- I think it wonderfully sums up credit reporting. Closing an account MAY hurt your score (or increase it) Opening an account MAY hurt your score (or increase it) Paying down a balance MAY hurt your score (or increase it) Yikes.
My "SIMULATOR" on EQUIFAX... PAY ALL BILLS ON TIME FOR THE NEXT 6 MONTHS...+10-30 POINTS (HAVEN'T BEEN LATE FOR 24+ YEARS...BUT IN THE NEXT 6 MONTHS...I CAN GAIN UP TO 30 POINTS)!!! I apply for a new MORTGAGE...-15 points/+5 points New card $10,000...+/- 10 points New car loan $20,000...-15 points/+5 points New store card...+/- 10 points Max out...-50/0 points New account (BT) $20,000...+/- 15 points
Calypso | 122 posts since Apr 2002 24.30.149.243 | 06.04.2002 @ 00:12 Love your highlight-- I think it wonderfully sums up credit reporting. Closing an account MAY hurt your score (or increase it) Opening an account MAY hurt your score (or increase it) Paying down a balance MAY hurt your score (or increase it) Yikes. ============= Here are 2 more to add to this list. 1* Anything you do will hurt your score. 2* Not doing anything will hurt your score.
