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new2this

Closing Good Accounts

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Hi all,

I'm interested in getting new credit. I've heard that when applying, new credit companies look at how much debt you are in and how much open credit you have.

I've have an account with about a 16000 credit available with about 500 dollars on the card. The company says if I close the account, I have 365 days to re-open it should I choose to do so.

Would it be a good idea to close this account while I'm applying for new credit?

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Hi all,

I'm interested in getting new credit. I've heard that when applying, new credit companies look at how much debt you are in and how much open credit you have.

I've have an account with about a 16000 credit available with about 500 dollars on the card. The company says if I close the account, I have 365 days to re-open it should I choose to do so.

Would it be a good idea to close this account while I'm applying for new credit?

No.

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If the account is in good standing, you want that to remain on your CR because is shows a longer history. Some people have also thought that it can affect your score to open new accounts to transfer balances etc because you want your creditors to see that you are using credit responsibly and paying it off on your own. I would keep a good one open, you should be able to get others by having that one on your report, 16k is a nice limit.

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Would it be a good idea to close this account while I'm applying for new credit?

Utilization is one of the biggest factors in your score which basically is the credit available to you, vs. the amount you're using. $500 out of $16000 is super low utilization and is good for your score.

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Ok...

Say you have numerous cc with ut under 5% and all are less then six months old.

(Got a little excited after finding this board and applied all at once)

In that or a similar scenerio is

very low utilization with numerous

accounts of similar age better then less accounts or would it be

similar for scoring purposes?

busted

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Yes, creditors do look at utilization but "age" of an account is also very important. Credit history is a huge factor especially since it can plug in values into the mathematical model that generates your score.

The Fair Isaac Corporation makes a point that the best credit scores are people with lengthy credit histories (I suppose they imply older people).

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