How much impact does closing cards have on your score?

[Anonymous]

Hi, I'm 21 years old and would like to start building my credit to 800. I do have many cards which are mostly department stores. I would like to pay them off asap and wondering if I should close them or keep it open? My goal is to get an AMEX card, haha. Does AMEX primarily look at your income or credit score when determining approval? Thank you very much!

[Anonymous]

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@Anonymous wrote:

Hi, I'm 21 years old and would like to start building my credit to 800. I do have many cards which are mostly department stores. I would like to pay them off asap and wondering if I should close them or keep it open? My goal is to get an AMEX card, haha. Does AMEX primarily look at your income or credit score when determining approval? Thank you very much!

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Welcome to the forums:

Closing credit cards does not affect your credit scored unless it dramatically raises your utilization. Here is a thread that explains credit cards in great detail:

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

Amex is primarily interested in your credit score and file much moreso than your income.  Only is a factor if it's too low for any approval and may affect the approval amount if you're approved for one of the AMEX revolving credit cards.

[heyarrnold]

Hi there! I am also 21. 

What does your credit profile look like? 

Rather than opening a bunch of store cards, open a card with a prime lender and use that to build a relationship. Try to not apply just because you want another credit card. Getting an 800+ FICO will take time. However, with proper management you'll definitely get there. 

As for Amex, they look at both to determine credit limits, APRs, and approvals. 

[Anonymous]

Welcome to the forums.

[Anonymous]

Thanks for the welcoming! Honestly, I have to admit that I did act crazy when I was 18 and got my first credit card which my balances reflect it. As I'm getting older, I am learning from my mistakes, haha! My credit profile isn't that well with high utilization so I am currently working to pay off some cards. I currently have the Paypal Extras Mastercard which is my highest limit and I want to close it as soon as I pay it off but what are your thoughts? The card is horrible in the sense that the APR is 23.99 and it's a variable rate.

[heyarrnold]

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@Anonymous wrote:

Thanks for the welcoming! Honestly, I have to admit that I did act crazy when I was 18 and got my first credit card which my balances reflect it. As I'm getting older, I am learning from my mistakes, haha! My credit profile isn't that well with high utilization so I am currently working to pay off some cards. I currently have the Paypal Extras Mastercard which is my highest limit and I want to close it as soon as I pay it off but what are your thoughts? The card is horrible in the sense that the APR is 23.99 and it's a variable rate.

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APR's can be reduced So don't close an account just for that.

Try not to carry balances! Treat you CC's as if they were cash. Only use what you can pay off in full each month. Emergencies do happen form time to time and carrying balances is understandable under those circumstances. But if you can avoid carrying balances, please do so!

[takeshi74]

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@Anonymous wrote:

Does AMEX primarily look at your income or credit score when determining approval?

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All creditors use both.  It's never just about score though.  Your entire credit profile matters.

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@Anonymous wrote:

I currently have the Paypal Extras Mastercard which is my highest limit and I want to close it as soon as I pay it off but what are your thoughts?

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You have to determine whether you close cards or leave them open using the info in the link in the first reply along with your preferences.  Some keep as much as possible open.  Some keep anything without an AF open.  Some just close whatever is no longer useful to them.  We can tell you where your preferences and management style are.