Hi all,
I'm new to the board, I've been trying to do research online and found this forum. Hopefully you can help me decide what to do 
Background = I'll be graduating college and starting a new job in a couple of months. The company I'll be working for is very large and has a credit union that I've heard good things about, so we're interested in switching over once I start full-time. Our credit score right now is 720's. Here are my questions:
-When I got married (almost 2 years ago), I closed my Wells Fargo Visa CC account (about 4 years on it) and switched to US bank, where we opened a new Visa CC account for both of us (now has 19 months). When/if we switch to this credit union, should I keep that US Bank visa cc open, or is it so young that it won't really make a difference if I close it? FWIW, it has a $2500 limit and is paid off completely every month.
-We have 3 hard inquiries on our account right now (1 for opening the US Bank Visa, 1 for apartment rental, and 1 for when we applied for a Southwest Airlines reward card and got denied for lack of credit history a few months ago). I'm assuming the credit union will run a check when/if we switch over as well - how badly will another check hurt my score?
-If we do switch over, and lose that (short) history on the US Bank cc and take another inquiry hit, how long until we get back up to a good score? I'm trying to look ahead to house-buying in the next 5 years or so, and don't want to be applying for loans with a lower score.
Thanks in advance!
-blakeyj
Welcome blackeyj,
Glad you're here and posting on the forums - and Congrats on your hard work!
blakeyj08 wrote:
Hi all,
I'm new to the board, I've been trying to do research online and found this forum. Hopefully you can help me decide what to do
Background = I'll be graduating college and starting a new job in a couple of months. Congrats!!!! The company I'll be working for is very large and has a credit union that I've heard good things about, so we're interested in switching over once I start full-time. Probably a great move. Lots of folks on these forums (including moi) love their CU's. Our credit score right now is 720's. Here are my questions:
-When I got married (almost 2 years ago), I closed my Wells Fargo Visa CC account (about 4 years on it) WF will continue to report on your CreditReports for about 10 years after closing - so for another 8 years or so and switched to US bank, where we opened a new Visa CC account for both of us (now has 19 months). When/if we switch to this credit union, should I keep that US Bank visa cc open, Yep - it's wise to keep it open or is it so young that it won't really make a difference if I close it? Even after it's closed, it still reports on your CR for ten years. In addition your AverageAgeOfAccounts is calculated using both open and closed accounts, so closing it in and of itself will not make a difference - at least as far as how young it is. Here's a helpful thread on the impact of closing accounts - however if it were me (and it's not) I would absolutely definitely keep this account open. FWIW, it has a $2500 limit and is paid off completely every month. Perfect! This card is a keeper and you've got a great history on it. Keep 'er open.
-We have 3 hard inquiries on our account right now (1 for opening the US Bank Visa (this one will age off shortly - they stay for two years on your CR), 1 for apartment rental, and 1 for when we applied for a Southwest Airlines reward card and got denied for lack of credit history a few months ago (this is a good thing to keep in mind - you need more credit history and again keeping that USBank card open will help your file). I'm assuming the credit union will run a check when/if we switch over as well - how badly will another check hurt my score? It varies - but inquiries are minor dings. You are being conservative in your credit and some inquiries are part of app'ing and building your credit. Additionally, different folks pull different CRA's for their inquiries. Some inquiries will be on TU, some on EQ, and some on Experian. They each tally up individually. So you may have two inquiries on one CRA, and one inquiry on another. You're fine on inquiries - it's good to be aware but don't fret over them when you are being conservative in your apps - as you most definitely are.
-If we do switch over, and lose that (short) history on the US Bank cc (You won't lose the history on USBank for about ten years - but I would recommend keeping it open - it's a very beneficial account) and take another inquiry hit, how long until we get back up to a good score? You may (or may not) take a small ding for the inquiry; more significantly you may (or may not) get dinged for a new card (IME you will not be dinged for this new account because you are building) and your AAofA will be affected (that's a given when you're building - IME not a deal breaker for you). I'm trying to look ahead to house-buying in the next 5 years or so, and don't want to be applying for loans with a lower score. You'll be well served by keeping USBank open and your new CU account will help as well. 5 years of good behavior will have you in the FICO Score stratisphere. If you close USBank or do not open with your CU, your credit history will be rather slim - I think both of these accounts will be very beneficial to you both short and long term.
Thanks in advance!
-blakeyj
In addition to the above, FICO does care if you have a bank/national CC. (It's FICO Reason Code 3) CU's and Savings & Loans are not scored as banks in the currently used FICO credit scoring system. USBank fits this criteria and FICO will ding you if you don't have at least one bank/national cc open. So even with a great CU account open, you will be further ahead FICO-wise if you have an open bank cc as well.
Congrats on your great credit history - and glad to see you here!
***And a kind moderator just PM'd me a correction to my post. One of my brain cells previously knew this, but it forgot! 
He quotes:
"Credit cards from credit unions count the same as bankcards from big banks. This wasn't always true, but with the newer models there's no difference. Specifically, this is true for the EFX (BEACON 5.0) and TU (04) scores most used by lenders. Not sure about EXP, but I believe it treats them differently......"
When you pull FICOs from this site, the Equifax is a Beacon 5.0; the TU from this site is TU 98 (most lenders seem to be pulling a new version - the TU 04). Experian FICO is difficult to obtain except through a lender or through a particular CU - it is not available from this site.
Hope this update is helpful! I can't believe I didn't remember this because I was so excited at the time I learned it - I love my CU's!
And, of course, that USBank card is still a good long-term keep for y'all. 
edit for clarification
Just to clarify, It's not a question of reporting; it's a matter of "counting" or being valued the same as 
There are different types of revolving accounts, even if/though they all report - they are not all always classified or valued the same way.
Now that muddies the waters that I hopefully just cleared after muddying them the first time. 