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Will this lower my credit score, or are department store credit cards not as big of a factor in the score compared to VS/MS/etc.?
Aside from that, how much does it lower your credit score to close Visa/Mastercard, etc.? I would like to close everything except one card for emergencies. |
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Closing any credit card will temporarily lower one's score. But since the hit is temporary, I'd suggest you close all your department store accounts because they charge huge interest rates. I'd stick with two or three visas or MC's, and pay them off every month.
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Thanks for the replies. I closed 7 dept store credit cards yesterday that had 0 balances and one of my Visa cards raised my limit by 2k the same day. So perhaps this was due to closing the cards. Anyway I called my visa and had them lower my limit to what it had been.
Last edited by karenkc : 10-17-2009 at 05:44 PM. |
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Why did you request a lower limit? Generally, a higher limit is more advantageous since it makes your utilization ratio lower. You never want to charge more than 30% of your available limit, so $5,000 limit means you should never charge more than $1,500. I've read several articles recently suggesting that ideally you should keep your charges to no more than 10% of your limit, or $500 or a $5,000 card.
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