Feeling like too much credit is available?

[Anonymous]

Cue the MyFICO Cheer squad. Gimme a C, gimme a L, gimme a I!

[MoreInfo1]

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@CreditMagic7 wrote:

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@Ron1 wrote:
Not enough credit history if you close most of them.


Ron.

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+1, Ron1

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Hi Ron. Do you mind explaining this as I'm not sure I understood it? I closed my oldest cards earlier this year (Capital One). They were both annual fee cards so I don't miss them at all. If I were to close my accounts, I'd likely leave at the very least, three open. That way, when I apply for a mortgage, I don't have to fuss with trying to open new cards again and waiting for them to age, report, etc.

Other than the credit cards, I also have a mortgage, auto and too many student loans on my credit report. Would three revolving lines of credit and the mentioned installment loans be impacted by closing? I thought the closed accounts would still be reported for 10 years?

Thanks for your help!

[Anonymous]

I've opened and closed credit card accounts a huge amount and my scores don't fluctuate more than 10 points when I pay off loans they drop even more but the data is kind of messy because when you pay off an account you tend to go for a new credit card because you think you have money to spend.

[ddemari]

I have to agree with what a lot of people have said on here. Especially the ones who mention income in relation to available credit.

Anytime I have been brushed with AA, it has been a mixture of new accounts with an emphasis on too much available credit. 

I make around $80,000.00 a year after taxes, my available credit is $140,000.00 give or take a little. 

Since all of our profiles are so different and it doesn't matter what happened to me because it is not an indicator of it being something that will happen to you... I would not worry too much about what the banks think, BUT... I would worry about ensuring myself that I am making all my payments on time and hopefully for more than just the minimum payment. 

Excel is a very handy tool or even just get a legal pad and colum out your cards, due dates, limits and balances. This way you can physically check them off as you pay and actually feel like you are accomplishing something whether it be reducing debt or just ensuring your payment is timely.