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Closing out new credit card accounts that have been opened during the past 120 days

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kysin2014
Contributor

Closing out new credit card accounts that have been opened during the past 120 days

I have around 10 credit cards in all.  I wanted to know if my credit score will go up or do absolutely nothing if I close out three of my new credit card accounts that were opened during the past 120 days?  They are low credit limits, i.e. $150, $350, and $500.  I have just learned that opening up new credit cards actually lowers your credit score since it affects your average age of accounts established.  Please let me know your thoughts and if you think it will help my credit score to just close them out since I don't use them and they are at a $0.00 balance anyway.

 

Thanks!

Transunion FICO: 672

Equifax FICO: 586

Experian FAKO: 698


src="http://ficoforums.myfico.com/html/assets/challenge.png" height="50" border="0" >Starting Score: 620
Current Score: 769
Goal Score: 800


Take the myFICO Fitness Challenge
Message 1 of 8
7 REPLIES 7
MarineVietVet
Moderator Emeritus

Re: Closing out new credit card accounts that have been opened during the past 120 days

 


@jinswaz wrote:

I have around 10 credit cards in all.  I wanted to know if my credit score will go up or do absolutely nothing if I close out three of my new credit card accounts that were opened during the past 120 days?  They are low credit limits, i.e. $150, $350, and $500.  I have just learned that opening up new credit cards actually lowers your credit score since it affects your average age of accounts established.  Please let me know your thoughts and if you think it will help my credit score to just close them out since I don't use them and they are at a $0.00 balance anyway.

 

Thanks!

Transunion FICO: 672

Equifax FICO: 586

Experian FAKO: 698


 

Hello and welcome to myFICO.

 

Since the cards all are at zero balance then closing them will have no effect on your score. Here is an excellent thread discussing the pros and cons of Closing Credit Cards.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 2 of 8
kysin2014
Contributor

Re: Closing out new credit card accounts that have been opened during the past 120 days

What if I am an authorized user on a two brand new store credit cards and have my spouse remove me as authorized user?  Will that improve my credit score since my credit report would no longer reflect those two brand new credit card accounts which would help my average age of credit cards?  Thanks.

 


src="http://ficoforums.myfico.com/html/assets/challenge.png" height="50" border="0" >Starting Score: 620
Current Score: 769
Goal Score: 800


Take the myFICO Fitness Challenge
Message 3 of 8
MarineVietVet
Moderator Emeritus

Re: Closing out new credit card accounts that have been opened during the past 120 days

 


@jinswaz wrote:

What if I am an authorized user on a two brand new store credit cards and have my spouse remove me as authorized user?  Will that improve my credit score since my credit report would no longer reflect those two brand new credit card accounts which would help my average age of credit cards?  Thanks.

 


 

If those cards are younger than any of yours then it probably will help you to be removed. You can always be put back on at a later date.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 4 of 8
haulingthescoreup
Moderator Emerita

Re: Closing out new credit card accounts that have been opened during the past 120 days

Have you read around here enough to understand all the different things that affect scoring? For instance, if you have CC balances reporting, those AU cards might be helping more than hurting, by improving your revolving util. If you have multiple accounts with baddies on them, and the AU accounts are clean, it might hurt to take them off, because you'll have a higher percentage of negative accounts. And so on, and so on.

 

There are a lot of different factors in play, and each situation is unique.

 

Check your two myFICO score reports (EQ and TU), and look on screen two, at the list of negatives on the left. Can you copy/ paste them here?

 

These are the factors that are affecting your score, with the first factor carrying the most weight. If short history is your first, it might help to get off the AU cards. If it's the third or fourth, it might not have much effect.

 

 

eta: MVV out-typed me, as he is a man of few words! Smiley Wink

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 8
MarineVietVet
Moderator Emeritus

Re: Closing out new credit card accounts that have been opened during the past 120 days

 


@haulingthescoreup wrote:

Have you read around here enough to understand all the different things that affect scoring? For instance, if you have CC balances reporting, those AU cards might be helping more than hurting, by improving your revolving util. If you have multiple accounts with baddies on them, and the AU accounts are clean, it might hurt to take them off, because you'll have a higher percentage of negative accounts. And so on, and so on.

 

There are a lot of different factors in play, and each situation is unique.

 

Check your two myFICO score reports (EQ and TU), and look on screen two, at the list of negatives on the left. Can you copy/ paste them here?

 

These are the factors that are affecting your score, with the first factor carrying the most weight. If short history is your first, it might help to get off the AU cards. If it's the third or fourth, it might not have much effect.

 

 

eta: MVV out-typed me, as he is a man of few words! Smiley Wink


Only because you took the time to explain it much better than I did.  Smiley Tongue

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 6 of 8
kysin2014
Contributor

Re: Closing out new credit card accounts that have been opened during the past 120 days

Here are my negatives on my Transunion FICO score of 671:

 

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

  1. You have a public record and a serious delinquency on your credit report.

    Number of your accounts that were ever 60 days late or worse:
    8 Number of public records on your credit report
    1 Record
    Only about 1% of FICO High Achievers [?] have a 60 days late payment or worse listed on their credit report.
    Virtually no FICO High Achievers [?] have a public record listed on their credit report.

    The presence of a public record [?] (such as a bankruptcy or tax lien) and a serious delinquency are powerful predictors of future payment risk. If the public record is valid, satisfying the public record will not remove it from your credit report. The fact that it occurred is still predictive of future payment risk and will be considered by your FICO score. However as these items age and fall off of your credit report, their impact on your score will gradually decrease. Most public records and delinquencies stay on your report for no more than seven years - though there are certain items that could remain longer.

  2. You've made heavy use of your available revolving credit.

    Ratio of your revolving balances to your credit limits
    13%
    For FICO High Achievers [?], this ratio is 7%, on average.

    Your FICO score evaluates your total revolving credit [?] balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

    Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

     

  3. You have multiple accounts showing missed payments or derogatory descriptions.

    Number of your accounts with a missed payment or a derogatory description
    8 accounts
    About 93% of FICO High Achievers [?] have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.

    Your FICO score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions [?].

    What to do about this: If the late payments on your credit report are valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history and these late payments will have less of a negative impact on your score as time passes.

     

  4. The remaining balance on your non-mortgage installment loans is too high.

    Check your installment loans to calculate your remaning balances
     
    FICO High Achievers [?] have paid down an average of 35% of the principal on their installment loans.

    Your FICO score weighs the balances of your non-mortgage installment loans (such as auto or student loans) against the original loan amounts. In general, when you first obtain an installment loan your balance is high, and as you pay this loan down, the balance decreases.

    Keep in mind: This factor will have less of a negative impact on your FICO score as you pay down your installment loans and the total balance decreases.

     


src="http://ficoforums.myfico.com/html/assets/challenge.png" height="50" border="0" >Starting Score: 620
Current Score: 769
Goal Score: 800


Take the myFICO Fitness Challenge
Message 7 of 8
kysin2014
Contributor

Re: Closing out new credit card accounts that have been opened during the past 120 days

My FICO Equifax score is apparently only 588.  Here are the negatives listed for my Equifax FICO score:  Let me know your thoughts for both my Transunion and Equifax.

 

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

  1. You have a public record and a serious delinquency on your credit report.

    Number of your accounts that were ever 60 days late or worse:
    15 Number of public records on your credit report
    1 Record
    Only about 1% of FICO High Achievers [?] have a 60 days late payment or worse listed on their credit report.
    Virtually no FICO High Achievers [?] have a public record listed on their credit report.

    The presence of a public record [?] (such as a bankruptcy or tax lien) and a serious delinquency are powerful predictors of future payment risk. If the public record is valid, satisfying the public record will not remove it from your credit report. The fact that it occurred is still predictive of future payment risk and will be considered by your FICO score. However as these items age and fall off of your credit report, their impact on your score will gradually decrease. Most public records and delinquencies stay on your report for no more than seven years - though there are certain items that could remain longer.

  2. You recently missed a payment or had a derogatory indicator reported on your credit report.

    Your most recent late payment happened
    7 Months ago
    Most FICO High Achievers [?], about 93%, have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.

    If you missed a payment, your FICO score evaluates how recently that missed payment occurred. In general, the more recent the missed payment, the more impact it has on your score. In your case, your last missed payment happened recently.

    What to do about this: If the late payment on your credit report is valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history so that your last missed payment will have less of an impact on your score as time passes.

     

  3. You have multiple accounts showing missed payments or derogatory descriptions.

    Number of your accounts with a missed payment or a derogatory description
    16 accounts
    About 93% of FICO High Achievers [?] have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.

    Your FICO score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions [?].

    What to do about this: If the late payments on your credit report are valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history and these late payments will have less of a negative impact on your score as time passes.

     

  4. You have a short credit history.

    Your oldest account was opened
    11 Years, 11 Months ago Average age of your accounts
    4 years
    FICO High Achievers [?] opened their oldest account 19 years ago, on average.
    Most FICO High Achievers [?] have an average age of accounts between 6 and 12 years

src="http://ficoforums.myfico.com/html/assets/challenge.png" height="50" border="0" >Starting Score: 620
Current Score: 769
Goal Score: 800


Take the myFICO Fitness Challenge
Message 8 of 8
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