Has anyone had their score drop from closing new accounts (under 6 mos?) My average age of accounts is low, but I dont know if closed is affecting that or not. I of course would like to close some old sub-prime cards but am afraid to make it worse!
Do they have FEES??? If yes...it won't matter that much... "IF" no fees...keep them for a while...like 2 years... YOU MAY LOSE 2-5 points each (GUESS)...then ONLY F.I.C.O. KNOWS FOR SURE...
I don't think it affects your score much if you have at least 2 or 3 old accounts (3 years or more). I've closed 3 new accounts at one time and my score didn't change. What's killing my score now is the number of accounts. Too bad FICO takes into account both old and new accounts in the "too many bankcard accounts" reason code. Some of those wont fall off my record for at least 10 years!
I have closed aone or two accounts per year since 1999. I closed one 4 month old account in 2001 with absolutely no effect on my score. I closed several three year old accounts in 2002 and my score dropped a couple points. This year I closed a three month old sears account and I had a ten point drop. I have allways thought that the drop was due to other factors like debt ratios and not the closing of my closing of a 3 month old sears card with a $700.00 limit. All of this is based on the Exp fake score. I personally don't think that closing young accounts make a big difference in the scores. KK
Yeah I am really torn. The reason I really wanted to close some young accounts was to increase my ave. age of accounts....closing them may not do it.
