Closing card effect on FICO2?

[gorgon]

I'm thinking about closing my Ollo card. I never use it, and other than a measly $100 auto CLI at month seven, it has not grown past $1700 CL.

This is my second oldest card so I'm wondering if closing it would have any affect on my FICO2 score? I currently have six revolvers (see sig) and I don't practice AZEO. I usually have two revolvers with small balnces report each month since I use them daily and they never have a zero balance.

Ollo card opened 1/2019

Current CL on all cards combined is $20,700

After closing Ollo combined CL would be $19k

Average monthly reporting is <4% of combined CL and less than 5% CL on each of the two cards.

[dragontears]

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@gorgon wrote:

I'm thinking about closing my Ollo card. I never use it, and other than a measly $100 auto CLI at month seven, it has not grown past $1700 CL.

This is my second oldest card so I'm wondering if closing it would have any affect on my FICO2 score? I currently have six revolvers (see sig) and I don't practice AZEO. I usually have two revolvers with small balnces report each month since I use them daily and they never have a zero balance.

Ollo card opened 1/2019

Current CL on all cards combined is $20,700

After closing Ollo combined CL would be $19k

Average reporting is <4% of combined CL and less than 5% CL on each card.

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Age isn't a concern % of cards with a balance might be though. You would be going from 33% (2/6) to 40% (2/5) which may affect one of your mortgage scores 

[gorgon]

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@dragontears wrote:

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Age isn't a concern % of cards with a balance might be though. You would be going from 33% (2/6) to 40% (2/5) which may affect one of your mortgage scores 

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The reason I asked is becuase I see posts in the mortgage forum where their LO told them they needed to close cards to be approved. Why would they do that?

[dragontears]

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@gorgon wrote:

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@dragontears wrote:

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Age isn't a concern % of cards with a balance might be though. You would be going from 33% (2/6) to 40% (2/5) which may affect one of your mortgage scores 

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The reason I asked is becuase I see posts in the mortgage forum where their LO told them they needed to close cards to be approved. Why would they do that?

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Because they have bad/uneducated LO or a lender with overlays? I have 10 open cards with >200k in credit limits and my LO didn't even blink about it back in July. 

The only time I can think of that a lender "requires" a card to be closed is to remove it from DTI by paying/closing it during closing and that is rare and likely avoidable if they had a different lender. 

[Anonymous]

Yeah closing cards is a BS recommendation.

Closing the card won't hurt your scores.  Even when it comes to number/percentage of accounts with a balance, 1 less won't matter if you implement AZEO prior to a mortgage app.

[SouthJamaica]

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@gorgon wrote:

I'm thinking about closing my Ollo card. I never use it, and other than a measly $100 auto CLI at month seven, it has not grown past $1700 CL.

This is my second oldest card so I'm wondering if closing it would have any affect on my FICO2 score? I currently have six revolvers (see sig) and I don't practice AZEO. I usually have two revolvers with small balnces report each month since I use them daily and they never have a zero balance.

Ollo card opened 1/2019

Current CL on all cards combined is $20,700

After closing Ollo combined CL would be $19k

Average monthly reporting is <4% of combined CL and less than 5% CL on each of the two cards.

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It will have no effect at all.

[Anonymous]

There is evidence closed revolvers count in that metric on EX2. It hasn’t been retested and confirmed though.