UPDATE: Should I....

[bs6054]

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@shorrttyycm1 wrote:
Thnx for response.

5 just seems like a lot. i really only wanted three tops. My goal was to replace both my crap cards...Orchard and Merrick with SallieMae, leaving me just three. But then luckily i got some good advice here and decided that closing them, as they are both my oldest accounts, would hurt too much,score wise. Had i asked first i wouldn't have applied to SallieMae. O well...it is a good card with rewards and no af. Darn ob and Merrick together cost me like $118 a year and neither have rewards.

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Closing accounts only has a near-term impact on the score if you have outstanding balances.  Age of the account doesn't matter at all, closed accounts will continue to report for up to 10 years.   So it is only a problem if you have balances on some cards and the credit limit on the cards being closed are a significant part of your total credit limit.

It's just if you are close to applying for a mortgage you might not want too many changes, but $118 in fees is a lot.

Edit: I see TNTransplant beat me!

[Gunnar419]

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@shorrttyycm1 wrote:
So, ik this probably sounds stupid but i recently applied and was approved for the SallieMae Master card. Now I'm second guessing the move because i dnt know what effect the new account is going to have on my scores. Should've thought about it instead of applying but didn't. I want to apply for a mortgage in next 4 mnths or so and the fico simulator says a new account would drop me like 12 pts. Should I just say no thanks and not activate the card. If i don't activate it would it still show up on my reports? Wow, i really shoulda slept on the decision to app in the first place but i think i goofed.

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I know the feeling! But don't worry. The Sallie Mae MC is a great little card for everyday spending and it has a nifty online interface. You'll like it.

As others have said, any damage has already been done. You might even be surprised to find that it helps, rather than hurts, your score. Never trust simulators. I've had my score go up with new accounts several times. It can happen.

If your mortgage banker asks about it, you can just say the SM card saves money on everyday purchases you would have made anyhow, which is the truth.

[shorrttyycm1]

O...and $12,000 NFCU NavChek

[bs6054]

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@shorrttyycm1 wrote:
Sorry, my cards are:
NFCU $14,000 no rewards
CapOne $5,000 cash back rewards 1 or 2% it
SallieMae $2500 5% gas grocery & amazon
OB $520 no rewrds +$59 annual fee
Merrick $300 no rewrds + $59 annual fee

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OK, then CLOSE the last two now!  No impact to utilization since they are a tiny fraction of your CL.

Then use SallieMae on gas/grocery/amazon, (at least until the monthly cap, then CapOne) and CapOne everywhere else.   And maybe small purchases every few months on NFCU if they are sensitive to non-use.

[shorrttyycm1]

Thnx everyone!
I don't want to make too many changes. I have 0 balances across the board so utilization is a non-issue.
Gunnar i hope you are right and it helps instead of hurts. Losing 12-13 pnts is gnna sting :-)

[shorrttyycm1]

@Bs6054,

But my orchard and merrick are my oldest accounts. My current AAoA is around 3...like 2.6 or something. My other cards are youngsters. Mortgage says need 3 trade lines of atleast 2 yrs right? If so and i close the two that only leaves 1 or 2 at 2 yrs i think.

[TNTransplant]

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@shorrttyycm1 wrote:
Thnx everyone!
I don't want to make too many changes. I have 0 balances across the board so utilization is a non-issue.
Gunnar i hope you are right and it helps instead of hurts. Losing 12-13 pnts is gnna sting :-)

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You'll be fine.  Close the two bottom-feeder cards now that you have no use for them, and enjoy the feeling of getting rid of them.

Also, the score impact of opening a new account is temporary - over the next few months it will get back to where it was and even higher.  You have to look at credit as a long-term process rather than an immediate one.

[bs6054]

Sorry, was thinking about Fico score rather than mortgage requirements.  If they need open tradelines of that age, then yes, you don't have a choice.

[shorrttyycm1]

@TNTransplant,
I would love to! Thr feeling of pride during that convo...i can only imagine. Not that I'm ragging on them they both gave me a chance when no one else would but now its time to go.;-)

I'm a product of my generation, i want instant gratification LOL! No patience at all!!!

[shorrttyycm1]

@Bs6054,

Noooo! I was hoping i was wrong and closing them would be fine. O well :-(