topic New Credit Card and FICO Score in Understanding FICO® Scoring

New Credit Card and FICO Score

Anonymous — Mon, 13 Jul 2009 06:22:18 GMT

I am from Canada.

I had a loan of $10,000 and paid in full, now a $18,000.00 car loan about half paid.

I have a Visa credit card (oldest card) and it has a limit of $3000.00 at 9.9% APR, revolving balance $1000.

I have a Master Card with the limit of $4000.00 at 22.99% APR balance $0.

These are the two cards on my 3.5 years old credit history. When I checked my score in April 2009, it was 748.

I want to get a low interest Master Card, if better cancel this high interest Master Card. I am wondering how will this affect my credit score and chance of mortgage approval, because I am planning to buy a house in the next 6 months?

Re: New Credit Card and FICO Score

smallfry — Mon, 13 Jul 2009 09:43:53 GMT

Keep all your cards open use a little and always pay in full every month. Let a small balance report on 1 card. If you don't need the credit don't apply for anything right now. Matter of fact with a mortgage looming definitely don't apply for anything. Don't close any of your cards.

Message Edited by smallfry on 07-13-2009 05:43 AM

Re: New Credit Card and FICO Score

RobertEG — Tue, 14 Jul 2009 05:42:29 GMT

I concur.
The high interest rate on the Master card is meaningless to you if you PIF each month. If you cancel it, you will lose its CL in your %util calculation, and also its age in your AAoA.

There is NO reason to cancel that card.