accounts? Does it depend how old the accounts are? I want to close Target (4 months) and Orchard (4 years+). Is it a good or bad idea?
DEPENDS on how the RNG is working that day... If you close to many cards at one time...YOU GET BURNT... One or two in 6 months is about it... They say DON'T close it before it hits one year old...but who knows for sure??? F.I.C.O. SURE WON'T TELL YA'
Good question, I think it depends on the age of the account and the credit limit. If the account has a high limit you may lose a few points because your debt ratios will go up. If the limit isn't that high compared to your other cards, it may actually help your score because it is a positive tradeline. If the account is old, closing it would reduce the average age of your accounts and you may lose some points. FICO works in mysterious ways.
Wish I knew the answer to this too. I recently decided to close a bunch of accounts b/c I don't need them and don't use them. It's disappointing if doing this lowers my scores (you'd think financial responsibility would be rewarded) but I finally decided that if I did them at once then I would take the hit and hopefully bounce back later. Also, I finally took the leap and called for the cancellations after telling myself that these scores are really nonsense and that I have to do what is right for me creditwise.
Ok..just closed Orchard. I told them the only way I'd keep it was if they upgraded my card to prime status/cl on their next AR. But he wanted to mail me an application, I said forget it. Closed after 4 years. It was my third oldest trade line. I have no debt balances so it can't affect my ratios, just the average account age. Target is next!
I only applied for it because of the instant 10% off. I made a fairly large purchase that day. I've only used it one time since. Also, it's only $2k, my lowest cl. I will wait till the 6 month mark, and see if they give me a significant increase. I want to phase out all the subprime cards, except for C1 and PVN since they are my oldest accounts. EQ 756 EX 791 TU 831
I just heard on CNBC yesterday that you will lose points if you close your oldest account, but like some other posters have said, I think it depends on the credit limit. In my opinion, you should never close a line that is not costing anything to use or not use. You just never know when you will need credit and when you really do need it, you probably won't be able to get it. Use your credit responsibly. www.creditsense.com
I heard the answer to this directly from Fair, Isaac: You only lose points by closing an account if the card is totally paid of or near paid off. If you close an account with a low balance, you through your balance ratio down and that hurts your score big-time. You get NOTHING in positive movement by closing an open accoutn.
"UNLESS YOUR GEORGE" and they DENY you credit for ONE REASON AND ONE REASON ONLY~~~"EXCESSIVE CREDIT LIMITS"
George, That must be because whomever denied you is using an older FICO model. Newer FICO models don't consider open credit lines to be predictive (if I'm understanding Fair, Isaac.) Different subscribers use different FICO models. The score is revamped every few years (for each bureau,) but few creditors keep their model current. So, you may be getting denied from an old model.
I would think a H/H INCOME $100,000+ and 24+ years (perfect credit) would speak for itself... WHAT IS AMAZING...I HAVE LESS CREDIT LIMIT NOW, THAN I DID PRE F.I.C.O.!!!
