Closing CC acc't ? - Mothering Forums

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#1 of 5 Old 09-16-2005, 02:49 PM - Thread Starter
 
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OK - So we will have a large deposit put in our acc't hopefully by the end of next week for the sale of our land in Texas - With tha $ we are paying of CC debt - almost all of it - still @5k more to go but we are paying off @20K
We are going to start house hunting after the first of the year unless we find something sooner - THe lady we are talking to to do the mortgage says not to close the acc'ts we pay off - to wait until we do the mortgage stuff becuase closing a long term acc't will drop of FICA score - Does anyone have more knowledge of this?

Kate, BioMama to Emma Lu, Elliana - Almost Mama to Martin, & Foster Mama to Baby T
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#2 of 5 Old 09-16-2005, 02:53 PM
 
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I've heard that also. Also one thing that raises your FICO score is to have credit extended to you that you're not using. So, if that credit card has a limit of say $7000 that looks good because you have that credit available and aren't using it.

-Angela
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#3 of 5 Old 09-16-2005, 03:14 PM
 
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According to Suze Orman, you should keep the accounts open even if you are not using them since they are your credit history. Part of how your FICO score is calculated is how much credit you have available to you vs. how much you are actually using. So, open credit cards with no balance actually raise your FICO score. This webpage has tips for raising your FICO score. http://www.myfico.com/CreditEducatio...YourScore.aspx
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#4 of 5 Old 09-16-2005, 03:26 PM
 
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Also part of your FICO score is the amount of time you have a credit history. So closing your old accounts basically makes you a "new" credit customer which carries more risks to creditors even though you aren't really a "new" credit customer. Keep them open and don't use them!
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#5 of 5 Old 09-19-2005, 12:20 PM - Thread Starter
 
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Thanks! I'll leave them open!

Kate, BioMama to Emma Lu, Elliana - Almost Mama to Martin, & Foster Mama to Baby T
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