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-   -   FICO score vs. account age (https://forum.dvdtalk.com/other-talk/525177-fico-score-vs-account-age.html)

Mongo 02-14-08 10:35 AM

FICO score vs. account age
First off...Hi all. Haven't logged on here in about 2 years. :blush: I was living in hicksville and only had dialup, and slow dialup at that. Finally moved back to Maine a year ago and got DSL....but never got around to coming back to the otter farm until now when I need your help. :shrug:

Ok, now on to the real question. I had pretty poor credit at one point, but over the last few years it's been getting better, and during the last year or so it's started moving up a decent amount due to some loans etc that I took out for the express purpose of strengthening my credit history. Yay me!

So, along the way I've picked up a few credit cards as well (Amazon card being my 'daily use' card for the GC's) A month or so ago, I decided to go ahead and accept an offer for another card and signed up for it online. Well, the credit limit they gave me is....useless, lol. Honestly, I see no point in keeping the damn card, however, I'm worried that if I cancel it after only having the account open for a few weeks that it'll ding my FICO score which I've been working so hard on improving.

So which is my best option?

A) Cancel card even though it's only a couple of weeks old.
B) Keep the card, but 'forget' about it. Since the credit limit is so low I assume it's not going to hurt me much.
C) Other?

And now that I've come back to ask this one thing....I'll probably end up being around a whole lot more. It's kind of like peeing when you're drinking beer. You can hold it for a long time at first, but once you cave that first time you're running back for more every 10 minutes. :toast:

GradVT06 02-14-08 10:41 AM


More available credit is a good thing.

Also, having the open card with no balance gives you a better debt/available credit ratio, which is a good thing for your score

DVD Josh 02-14-08 12:30 PM

Normally, I suggest keeping open accounts. The damage is done to your credit already.

However, you get none of the benefits of a new account (increased limits) nor account age.

The impact to your credit will be practically nonexistent.

HOWEVER, given your credit history, it may be difficult to get a better card until you've proven your credit worthiness. If it were me, I'd use the card for three months, paying off on time each month. Then I'd call CS and ask for credit increase.

Who knows, in 2 years that card might be your highest limit card.

Dr Mabuse 02-14-08 12:44 PM

keep the card...

canceling a credit card damages your Fica score...

DVD Josh 02-14-08 12:48 PM

Originally Posted by Dr Mabuse
keep the card...

canceling a credit card damages your Fica score...

The damage is already done by opening the card.

Only two things can happen:

1) Nothing

2) Whatever bump in his AC ratio he got from the card will return to where it was.

Closing THIS card will not damage his score.

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