Effects of closing a card on FICO 08 vs mortgage scores?

[Anonymous]

I'm still on the fence about combining my Capital One cards. Currently, my open revolving accounts are

- Fingerhut 02/2015 ($1,600)

- Cap1 03/2015 ($2,000)

- Cap1 04/2015 ($2,000)

- Comenity MC 08/2015 ($2,000)

- Amex 11/2015 ($1,000, not yet reported)

Current FICO 08 scores are 652 (EQ), 647 (TU), 645 (EX).

I'm trying to figure out if combining the cards would be a positive, negative or neutral move as far as my scores are concerned. The score calculators (Cap1, MyFICO and CK) all show a slight dip due to the addition of the new card, but nothing major. 

[Anonymous]

---

@Anonymous wrote:

I'm still on the fence about combining my Capital One cards. Currently, my open revolving accounts are

- Fingerhut 02/2015 ($1,600)

- Cap1 03/2015 ($2,000)

- Cap1 04/2015 ($2,000)

- Comenity MC 08/2015 ($2,000)

- Amex 11/2015 ($1,000, not yet reported)

Current FICO 08 scores are 652 (EQ), 647 (TU), 645 (EX).

I'm trying to figure out if combining the cards would be a positive, negative or neutral move as far as my scores are concerned. The score calculators (Cap1, MyFICO and CK) all show a slight dip due to the addition of the new card, but nothing major. 

---

There will not be an addition of a new card. Whichever account you keep will have its limit raised, and the other account will be closed. I saw no score effect when I combined my cards.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

I'm still on the fence about combining my Capital One cards. Currently, my open revolving accounts are

- Fingerhut 02/2015 ($1,600)

- Cap1 03/2015 ($2,000)

- Cap1 04/2015 ($2,000)

- Comenity MC 08/2015 ($2,000)

- Amex 11/2015 ($1,000, not yet reported)

Current FICO 08 scores are 652 (EQ), 647 (TU), 645 (EX).

I'm trying to figure out if combining the cards would be a positive, negative or neutral move as far as my scores are concerned. The score calculators (Cap1, MyFICO and CK) all show a slight dip due to the addition of the new card, but nothing major. 

---

There will not be an addition of a new card. Whichever account you keep will have its limit raised, and the other account will be closed. I saw no score effect when I combined my cards.

---

Because your accounts are under a year old, I would not expect to see any effect from combining them.

[Anonymous]

I have a new Amex reporting this month. That's the new card. It hasn't hit yet.

I saw my FAKO score on EQ jump 20 points by lowering with UTIL on Capital One (it's now $300/$4000). Sadly, it lowered my FICO by 2 points (only change reported). Not sure why. 

Any idea how UTIL is weighted on different scoring models? My mortgage LO seemed to feel that my prior UTIL (25%) was really depressing my score and the best move was to get overall UTIL to 5% or less. I'm not seeing positive movement in my 08 score as it decreases, however. 

[Anonymous]

---

@Anonymous wrote:

I have a new Amex reporting this month. That's the new card. It hasn't hit yet.

I saw my FAKO score on EQ jump 20 points by lowering with UTIL on Capital One (it's now $300/$4000). Sadly, it lowered my FICO by 2 points (only change reported). Not sure why. 

Any idea how UTIL is weighted on different scoring models? My mortgage LO seemed to feel that my prior UTIL (25%) was really depressing my score and the best move was to get overall UTIL to 5% or less. I'm not seeing positive movement in my 08 score as it decreases, however. 

---

It's unclear whether you are asking about the utilization on one particular card ("I saw my... score jump... by lowering utilization on Cap One...") or your total utilization (considering all cards and their combined limits and debt).

The evidence I have seen people produce here on the forum suggests that you get no scoring benefit from lowering a particular card from 25% to 5% (considered by itself).  Per card U seems only to matter when a particular card is starting to get really high.  But yes, you should get a benefit from going from 25% to 5% if it is total, whether it is FICO 8 or mortgage scoring or Bankcard Enhanced or whatever.

But to me it seems like largely a no brainer.  Pay off your cards because, even if it doesn't help your score a lot, it prevents you from paying interest.