Credit Card companies

But it will still hurt it, right?

 

Yes, in a couple of ways. If he has had the card a while and cancels it he might lose credit history. Age of open accounts is a factor. If he has another card then he will lose credit available and another factor is the ratio of credit used to credit available.

 

Wouldn't the credit history still be on the report? I know I have cancelled cards on my report, it just says they are closed. I agree the ratio is probably the most important. As far as hurting the score, closing the card will only drop the score a couple of points, I mean it won't take a 760 to a 700 or anything like that, I don't think.

 

I've pulled credit reports that explain the positive and negative factors affecting my credit.

It will say things like
Positive: Your oldest open account is 16 years. The average oldest open account for most Americans is 8 years.


I'd say it depends on the limit of the card how much his score drops. If he goes from using 40% of available credit to 90% it will drop considerably.

 

I've had to take classes on credit, and Sly is 100% correct. Do NOT close old cards. It keeps your ratio of credit used to credit available lower AND it shows you have OLD lines available to you. I'll see a lot of young people with perfect pay history and good scores...but I see a lot of people 60+ with 800+ scores. The main difference is they'll have cards that have been open for years.

 

Don't charge shit if you can't pay it off right away. Debt free is the way to be.

 

Would the rate charged on a mortgage be different for someone with a 770 versus a 800?

 

LOL. this is Thelt we are talking about. Try the mid 600s

 

Nope. Pretty much all rates are the same if you are approved through FNMA. Difference might be the amount of documentation you need to provide. 730+ generally needs no income or asset docs...GENERALLY.

Second mortgages are more rate sensitive...720 is usually the top tier.


But no. A 770 is damn good.

If Thelt has a 600 he's got work to do.

 

Yep, anything below 660 usually got a big NYET from me back in the day.