Credit Cards

[mailwoman]

To $10.00!!! I said that I wanted it back to the originial $6.00 but they said that they will close the card of I don't accept the terms. I want to buy a house in a year and my credit rating is 692 so I don't need to make any mistakes. If I close this, will it affect my credit? What should I do? A balance transfer? Please help! I have no clue where to start.

[VEEnVEGAS]

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.

[mailwoman]

Thanks for the quick reply! I have one other card and it's like 2 months old. I've had this one for about 3 years with a great payment history. I understand that closing and opening credit cards is not a good reflection on your report because my score dropped five points for opening a new card. I am buying a house in a year. Do you suggest that I keep it and suck it up, so to speak? Again, thanks!!!!

[mailwoman]

Also I don't have any other debt that I am showing payments on other than my student loans and thwy are deffered until after grad school

[VEEnVEGAS]

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.

[athensguy]

If it's going to be a year before a mortgage application, I would try to get two more cards and then close the one with the monthly fee.

[BungalowMo]

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! 

[mailwoman]

Okay! I guess I'll suck it up, then. I'm glad I thought of posting before cancelling.

athensguy

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!!!

[VEEnVEGAS]

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?

[mailwoman]

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