Question about closing cc accounts

movinonup79 · ‎05-02-2011

Okay, I am in the process of moving to another state and looking to purchase my 2nd home. I need to get my DTI down, and I really don't need this many credit cards anyways. So I wanted to know if it will affect my score to cancel a few accounts. I know I need to keep my first card, to not foul up my AAoA. Here is the cards:

Continental Finance (opened Feb. 2007) - I know I have to keep this one to keep my AAoA.

Orchard Bank (opened summer 2009) - would like to close

Credit One Bank (opened summer 2009) - would like to close

Capital One (opened Summer 2010) - would like to close

Capital One (opened January 2011) - would like to keep as it is still in 0% interest.

Can I do this without hurting my scores? They would all be paid off before closing, of course.

Thanks!

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

Anonymous · ‎05-02-2011

Hi movinonup,

Congrats on your upcoming move and the excitement of looking for a new home!

Here's a link to fused's exceptional closing cc's post - very helpful info.

Paying off the cards or at least reducing utilization, and reducing the number of cards reporting a balance will impact your FICO score - sometimes dramatically, so that's a good first step.

When you consider closing cards, which cards have AF's?

movinonup79 · ‎05-02-2011

Thank you for responding. When you say dramatically affect my credit score, will that be for the positive? Unfortunately, the Continental Finance card has an annual fee, but that was my first card as a rebuilder, so I think I'm stuck with it for a while. Also, the Orchard and Credit One have AF's, so I'm getting rid of those.

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

movinonup79 · ‎05-02-2011

Also, the cards I will keep will have 0 balances, so as to not mess with my utilization. I just want to reduce my DTI and possible lenders looking at the possiblilty of me overextending myself with so many cards.

04/01/10 - TU: 659 / EX: 648 / EQ: 601 (LO Scores)
2/25/10 - EQ 588 / EX 660 (LO) / TU 633
2/9/10 - EQ 567 / EX 585 / TU 601
1/12/09 - EQ 544 / EX 570 / TU 593
12/12/09 - EQ 536 / EX 555 / TU 582
11/13/09 - EQ 536 / EX 586 / TU 566
11/03/09 - EQ 540 / EX 544 / TU 574
07/18/06 - EQ 478

Anonymous · ‎05-02-2011

@movinonup79 wrote:
Also, the cards I will keep will have 0 balances, so as to not mess with my utilization. I just want to reduce my DTI and possible lenders looking at the possiblilty of me overextending myself with so many cards.

That's a non-issue - I wouldn't worry about that at all in your situation.

And yes, lowering utilization along with number of cards reporting a balance has a positive impact on your FICO.

Concentrating on your DTI is very wise. I wish you the very best.