Welcome, @Anonymous. 
I think your plan is sound. Avoid closing accounts if they have balances; that unnecessarily complicates things. I'd expect a tiny score drop at most and probably none at all.
@Anonymous wrote:Hello everyone I have 35 active accounts and some of them I just don't use anymore. If I closed some of these accounts where the credit lines are lower and the age of these accounts is newer will it have an effect on my FICO score? I'd really like to close the majority of my retail accounts but seriously considering closing just 6 accounts right now and they all have zero balances. My current total utilization is running close to 13%.
1. Since you're at 13% aggregate utilization, which is not ideal, I would hold off on closing accounts at this time, since an increase in your aggregate utilization could have a negative effect on your FICO scores.
2. Since the accounts are at zero balance, they are also helping in terms of "number of accounts with balances", which is especially significant for your mortgage scores.
3. Closing the accounts precipitates their falling off your credit reports -- i.e. it starts the clock running on that -- which affects your average age of accounts. Closed accounts often stay in your reports for a long time, but I have had closed accounts dropped a year after closing.
Under 30% (which is actually 28.9% or below) is a good look for lenders. Going over 8.9% takes you out of the top scoring tier. You're at 13% right now. If your utilization increases but stays under 28.9%, you're not likely to see a lot of negative scoring action.
We don't have much information about your situation. If necessary, would you have the financial ability to optimize your score if the situation called for it? To do that, you'd leave a small balance on a single card. Taking another step back, we don't where your scores fall in. If they're low, you don't want to rock the boat.
But I'm guessing that with 35 accounts and 13% overall utilization, your score is fine and your finances are in order. If that's the case, go ahead and close.
@Anonymous wrote:Thanks. What is the ideal aggregate? I thought anything under 30 was good. I have nine accounts with a balance and one card carries the bulk of my debt while the other eight have balances of $100-250. I will keep them open since they don't have balances.
Well the ideal is 1 or 2 percent, but 8.9% and 6% are important thresholds.
30% isn't good at all.
On individual accounts being under 30% is important.
@HeavenOhio wrote:Under 30% (which is actually 28.9% or below) is a good look for lenders. Going over 8.9% takes you out of the top scoring tier. You're at 13% right now. If your utilization increases but stays under 28.9%, you're not likely to see a lot of negative scoring action.
We don't have much information about your situation. If necessary, would you have the financial ability to optimize your score if the situation called for it? To do that, you'd leave a small balance on a single card. Taking another step back, we don't where your scores fall in. If they're low, you don't want to rock the boat.
But I'm guessing that with 35 accounts and 13% overall utilization, your score is fine and your finances are in order. If that's the case, go ahead and close.
I disagree. Being close to 30% aggregate utilization will cost a lot of points.