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credit cards and FICO score

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    credit cards and FICO score

    I currently have three cards: #1 - AMEX, 20 years old, used and paid off monthly, no late payments. #2 - MasterCard, 10 years old, used and paid off monthly, no late payments. #3 - Visa, 20 years old, used and paid off monthly, no late payments... Here's what I want to do: cancel card #3 and open another card. How will this affect my FICO score?

    #2
    Most likely nothing. Like you, I have several credit cards that I use and pay in full each month and recently I was talked into opening a 4th card because it was offering no foreign translation fee's and I was planning to use it in Europe on vacation. After receiving it my credit score still remained over 800. When I talked to the bank manager that had talked me into the card I asked him your very same question. He sort of just laughed and said with my credit score I had nothing to worry about. Sounds like your credit score is also very high.

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      #3
      Is the card in question a large percentage of your total available credit? If closing card 3 significantly reduces your available credit across the 3 cards, it may negatively affect your score.

      Why bother closing it? You could just put it in a file folder and not use it, but still retain your total available credit. You can still get the new card anyway.

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        #4
        Welcome to SA. Only rarely will a credit inquiry affect your FICO score even short term. Do you plan to buy a new house in a couple of days? Why must you cancel CC 3? It will expire eventually.

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          #5
          Hard to guess. I ran a simulation on my score and closed my oldest credit card (32 years). Experian and Transunion went up 18 points and Equifax went down 18 points. Go figure.

          Tom

          If anyone is interested, I used the credit score simulator that comes with my credit monitoring at Identity Guard.

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            #6
            Tom, can you tell us how see the the value of your credit monitoring from fee for service Identity Guard [or any other brand]. We've now been hacked on two different CCs over a couple of years, by attempts to make significant purchases in other countries. I know the CC is in my wallet. I know the last 5 items purchased... I know the procedures of the CC issuers ...

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              #7
              They send me note if they see any activity on any of the reports. This might save me from someone opening credit in my name. Other than that and getting my credit score for all 3 agencies every month, it's not very useful. I call them up every 6 months or so and give them a whoa is me story about how expensive everything is and they drop the price for another 6 months. Once that stops, I will cancel it.

              For charges on current cards, I check all my balances every day so I can see real quick if something nefarious is afoot.

              Tom

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                #8
                It's a three-digit number that summarizes the positive and negative information on your credit report.Your FICO Credit Score considers five categories of credit data from your credit report that may vary in importance for different credit profiles.In the land of credit scores, FICO is king. The bulk of banks in the United States use FICO scores to decide whether to offer credit to potential borrowers and at what interest rate.

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                  #9
                  Originally posted by brningwyre View Post
                  I currently have three cards: #1 - AMEX, 20 years old, used and paid off monthly, no late payments. #2 - MasterCard, 10 years old, used and paid off monthly, no late payments. #3 - Visa, 20 years old, used and paid off monthly, no late payments... Here's what I want to do: cancel card #3 and open another card. How will this affect my FICO score?
                  First post so lets hope I don't mess things up.

                  If there is no Yearly fee on the #3 Card keep it open.
                  Currently your Average Age of accounts is 15 years. If you Close #3 and open a new CC that will drop to 10. If you leave #3 open add another account then you will be back at 15 years for the average age of accounts in just 5 years.

                  Closing any account is a Negative affect on your Credit Score.
                  Opening a new line of Credit will also have a Negative affect on your Credit Score up to 2 years.

                  Keep it open, tuck it away if you don't plan on using it.

                  Comment


                    #10
                    My Opinion

                    Since you’re doing so well managing these cards, I would say leave that third card alone and open a new one. For one, it’ll serve as a seasoned tradeline on your credit report whenever you want to apply for something else. Those are difficult to come by. I had to go to [link removed] to have an unsecured finance broker add a few to my credit report so I could have a good enough score to get the unsecured credit cards I wanted. My scored bumped up from a 720 to 788 after a month then I went ahead and let them apply for my cards. I got $80,000 worth when it was all said and done. I’ll be sure to follow in your footsteps and spend wisely. Not to mention pay off my balance each month. High 800s is definitely the goal.
                    Last edited by disneysteve; 01-26-2015, 03:49 PM. Reason: link removed

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