01-07-2010 10:06 AM
01-07-2010 11:28 AM
01-07-2010 01:43 PM
You're fine either way - if you close them or leave them open. Store cards don't help your mix of credit, by the way. Mix refers to a mix of mortgage, installment and revolving accounts. (Refer to happy's guinea pig threads on these forums).
I like to keep my number of accounts small and easy to manage, so I tend to close unused store cards. However, closing them (or leaving them open) won't impact your FICO scores.
The exception to that is a consumer finance account. Closing those is always a good idea.
Is your overall plan to keep your scores as high as possible for the home purchase? What are your scores now? Post some more info and you'll get lots of feedback to meet your goals.
01-07-2010 02:06 PM
Thank you both. Our scores right now are both 800! We will probably get rid of one of our car loans only to get a different car this spring/summer. Our motorcycle will be paid off in 6 months and hopefully my student loan by the end of 2010. I just want to see how high I can get our credit before spring/summer 2011.
Another question...if I do get rid of the credit cards (1 regular and 3 store) will it hurt my credit? I will keep the 1 credit card that we use and pay off each month. I just like my points that I get with it
01-07-2010 02:29 PM
if I do get rid of the credit cards (1 regular and 3 store) will it hurt my credit? I will keep the 1 credit card that we use and pay off each month. I just like my points that I get with it
Look at "Helpful Threads" sticked at the top of this thread. Then select "Closing Credit Cards" for some helpful info on closing cards. FICO does want you to have at least one bank/national credit account (LOC or card or overdraft) open - so make sure you have one of those that remain open if you decide to close some cards.
Here's the thread on merchant cards: http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=184342&query.id=12409...
You have a reasonable number of cards - so again, you're fine either way - at least as far as FICO is concerned.
Congrats on your beautiful scores! DH was at 804 with a mortgage, installment and one bank card. It's a good happy place!
01-07-2010 04:05 PM
umm pretty sure a store card does help you... someone else chime in on this also, we have discussed it in length over the past
Hi Creditaddict...I don't think I've seen any evidence of people getting dinged by FICO for not having a store card. What I consider a "mix" of credit is: mortgage, installment, and revolving.
In fact...I've read postings here..one just today...that when auto insurance companies soft credit reports in order to quote rates, having "too many" store cards is seen as an element of higher risk.
I understand that there is a use for store cards. I think the decision to get a store card, however, should be made based on filling a credit or financial need...not based on adding to a credit mix. I personally don't have any store cards. I had a Sears, but somehow, sometime, it turned into a Sears Citi MasterCard. So, now my one store card is a general use MasterCard.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.