Is this your oldest credit card? Your only card?
If this is really going to make a huge difference in your credit score I'd keep the account open until after you close on your house. The extra $4.00 per month will only come to $48.00 in a year, not much at all if it makes a difference in your getting the mortgage or not, or in the rate you receive for that mortgage.
Closed cards are supposed to continue to figure into AAofAs for 10 years. So closing this card should not affect that. Utilization may very well be affected though, which would lower scores. A lot depends on what your credit limits are and how you use your new card.
Truthfully, I'd continue to pay the fee and keep the card open until I had the mortgage or another tradeline. You have a thin file already and IMO closing this card might make things worse.
Hopefully others with more experience in this will respond soon to your questions.
Yeah...if I were you, until you get that house...get a fat straw & put some cubes in that glass &, as you said...
Suck it UP!
It will help if that glass has a tasty beverage too!
Okay! I guess I'll suck it up, then. I'm glad I thought of posting before cancelling.
You suggested that I get two more cards before I buy the house. Wouldn't that lower my score further or should I have four cards under my belt and hope that my score increases before next year? I only have two cards so far and a student loan. I just got the second one and haven't charged anything. Thanks!!!
I agree that another card or two would probably improve credit scores over time. You have a year before looking for a mortgage...plenty of time to recover from any loss of points due to new inquiries, new accounts, etc.
What other card do you have now?
The new one is called Continential Finance Gold Mastercard. The pre-approved form came in the mail and I just went online. Can you suggest any cards that will accept 692 score, hopefully without an enormous monthly fee, $10.00 adds up! I don't know how to search for cards and the FICO site didn't give alot of suggestions. I really would like Citibank but I dont want to apply and not get approved and that effect my credit too