Understanding FICO® Scoring

[aten1701]

Back in June or July of 2006, I purchased a nice Plasma TV from Circuit City, and applied for their CC which gave me 18 month interest free financing.  It is due I think this November 2007 or so, in which time I'll pay everything off.  I know that the card is through Chase, and am curious if I should just close this card out all together once I pay off the full balance?  Will this improve or hurt my credit score?

And what is the general thought on these department store credit cards?  Should they be closed or not even applied for, in the context of ones FICO?  My wife has closed a lot of her dept store cc, but recently applied for an Ann Taylor credit to utilize that 10% off of the first purchase nonsense.  We both have our personal scores in the mid 750s.

Thanks!

[fused]

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aten1701 wrote:

Back in June or July of 2006, I purchased a nice Plasma TV from Circuit City, and applied for their CC which gave me 18 month interest free financing.  It is due I think this November 2007 or so, in which time I'll pay everything off.  I know that the card is through Chase, and am curious if I should just close this card out all together once I pay off the full balance?  Will this improve or hurt my credit score?

And what is the general thought on these department store credit cards?  Should they be closed or not even applied for, in the context of ones FICO?  My wife has closed a lot of her dept store cc, but recently applied for an Ann Taylor credit to utilize that 10% off of the first purchase nonsense.  We both have our personal scores in the mid 750s.

Thanks!

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Read this thread, it should answer your first question.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=30100

Dep't store cards have high interest rates and this is why I hate them. That said, having one or two of them helps with your credit mix. Credit mix accounts for 10% of your FICO score. Closing them is entirely up to you guys. Just make sure if you do, the card has a $0 balance and is in good standing, no baddies (i.e. late payments) . In other words, FICO wants to see a mix of different TL (tradeline) accounts such as: a mortgage, CCs, store cards, auto, student and other installment loans.

P.S. Nice scores!

Message Edited by fused111 on 08-07-2007 08:54 AM

[aten1701]

Thanks for the note and explanation on dept. store cc.  I will then perhaps consider possibly leaving this one open to just provide a mix to my collection of TL.  Thus far, I have been in the habit of closing all my cc and open lines of credit.  To date, I have 1 Visa (WFB), 1 Mastercard (BoA MBNA), this Circuit City Card, 1 mortgage (Chase), 1 2nd mtg (Chase - heloc), and my car payment through Wachovia.

I will be applying for CapitalOne Healthcare financing, since I'll be getting Lasik surgery within the month.  They are offering 18 month interest free.  Should I close this account once that is all paid off?  I am hearing mix reviews about CapitalOne.

Thanks!