Understanding FICO® Scoring

[HI96714]

Hello,

I just applied for and approved for 2 American Express cards: 1 Gold Premier Rewards & 1 Platinum.  Both have no pre-set limits, and are in the mail to me, pending activation.  I don't need the Platinum card.  Would my FICO scores be impacted for cancelling a card within 4 days of approval?  I also have a CitiMastercard with 8500 limit.  I never carry any balances and pay off in full every month, but I don't want to manage too many cards.

I'm 30 years old and don't plan on purchasing a home within the next 5 years.  I do foresee applying for an auto loan within the next 12 months.

My TU Score is 707 and Equifax is 742.

Any advice and feedback would be greatly appreciated.

[Booner72]

The only way closing it could hurt you is if it affected your utilization (overall).  So since you don't carry balances that shouldn't be the case.  but if I were you, I just would keep it open since you already got a possible ding for the inquiry.  How can it hurt if you just leave it alone? They will probably close it eventually for non-use.

[HI96714]

But isn't it bad for my score if they cancel the card?

[MarineVietVet]

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HI96714 wrote:

But isn't it bad for my score if they cancel the card?

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Whether you or the credit grantor closes an account in and of itself will not affect your score. As Booner said if your utilization goes up because of the loss of the CL on a closed card then that might hurt your score. Here is an excellent thread that talks about the pros and cons of Closing Credit Cards

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

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

[HI96714]

Thank you - that link was very informative!  I guess my question is that the 2 cards in question have no 'pre-set limit,' so in that regard, the utilization percentage is probably already 'off,' though I would pay all balances in full every month. 

In addition to that, if I cancel one of those no pre-set limit cards, will it negatively affect the average age of my accounts?

Thanks again for your help!

[MarineVietVet]

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HI96714 wrote:

Thank you - that link was very informative!  I guess my question is that the 2 cards in question have no 'pre-set limit,' so in that regard, the utilization percentage is probably already 'off,' though I would pay all balances in full every month. 

In addition to that, if I cancel one of those no pre-set limit cards, will it negatively affect the average age of my accounts?

Thanks again for your help!

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As is stated in the thread Closing Credit Cards neither AAoA nor credit length history is affected by closing a card.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

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