Understanding FICO® Scoring

[tommy123]

I disagree.

On my CR, the closed account has a credit limit of $0.  So in short term, it does have a neg impact.

on long term, there is another impact, it reduces my acccount age when it's removed.

[stu]

Personal experience: I closed 6 credit card accounts that I had for over 10 years. My credit score dropped 35 points. It has been 1 year since this happened and it has not yet risen to the same level as before the cancellations. I charge about 10k / mo. on cards and carry no debt.

You can talk your credit card companies into waiving the annual fees.

I will never cancell a card again!

[deemonee]

It can hurt you if you do not have a lot of credit. I'm 22 years old so for me to close an account is a bad idea because the ratio of having credit versus not having credit. I have a better explanation for it but I'm at work and can't talk much about it!

[Stiles]

So will closing accounts with smaller balances help?  It is my understanding that cards with small available credit lines and not looked upon favorably.

[scorecrazybob]

Is it better to have them close the account because of inactivity or for you to close it?

[Tuscani]

---

scorecrazybob wrote:
Is it better to have them close the account because of inactivity or for you to close it?

---

Makes no difference to your score.

[Tuscani]

---

Stiles wrote:

So will closing accounts with smaller balances help?  It is my understanding that cards with small available credit lines and not looked upon favorably.

---

You want $0 balance on closed accounts.

Message Edited by Tuscani on 07-31-2007 12:13 PM

[Tuscani]

---

deemonee wrote:
It can hurt you if you do not have a lot of credit. I'm 22 years old so for me to close an account is a bad idea because the ratio of having credit versus not having credit. I have a better explanation for it but I'm at work and can't talk much about it!

---

Remember.. this thread addresses the worry of lost age and closing accounts.. util still applies no matter if the account is closed or open.

[masdeocho]

OK, tell me if I've got this right:

Say I have a five-year old card.  I close it today.  Two years from today, does it count towards my history as a seven-year old card?  It's not frozen in time today when I close it as a five-year old?