I see I am not the only one trying to close some of my accounts. I am wondering how much time I should allow between each closing?? I closed my spiegel this evening and I am wondering how long I should wait until closing the next one?? Also Michael has said closing too many too often could hurt your scores, I am wondering hoe, if you close accounts you don't have balances on, why would that hurt your score?? Not doubting anyone, just curious
RE: Closing accounts, how ofte Closing accounts that you don't use should actually improve your score a little as it will lower the ratio of open credit to income. You would be less likely to generate the "too many open accounts" and "too much revolving credit" FICO reason codes. The only thing to be careful of is that if you do have a high debt load (other than mortgage) that it will make your 'available credit used' ratio go up and that could raise some red flags.
RE: Closing accounts, how ofte Mom, No one really knows how FICO works 100% but I've seen enough posts on this board to know to close the accounts out slowly. Possibly the best reason is that a system like FICO factors in dramatic unusual activity, such as many Inquiries! My advise is close them out 1 at a time every 2-3 months, and as J Edgar said don't move the balances to the existing cards. FICO will look at the debt to credit available ratio you have so a $2,000.00 debt spread out on 6 cards will look better to FICO than that $2000.00 on 2 cards!
RE: Closing accounts, how ofte Thanks J. Edgar, yes my spiegel had no balance I never used it and my lowes is also zero balance, I closed spiegel this month and plan to close Lowes next month, then pay down some cards and gradually close another one in December.
RE: Closing accounts, how ofte Thanks Michael, I take your advice and close gradually, do you agree that if the cards have zero balances, then closing them won't hurt much?
RE: Closing accounts, how ofte Obviously if there is a 0 bal. then you won't have to worry about increasing debt on the other accounts.
