9
A client in Phoenix said my advice to close old cards was hurting their score. I argued for simplifying, but they showed me a 40 point drop. What's your take: close for control or keep for history?
3 comments
Log in to join the discussion
Log In3 Comments
sean_green442mo ago
That 40 point drop is real, it's the credit utilization ratio getting worse. Maybe keep the oldest card but close the newest one to split the difference.
3
charles_young922mo ago
Wouldn't closing the newest card, like @sean_green44 said, just lower your total credit limit and make the ratio even worse?
2
That 40 point drop is the credit utilization hit. I'd keep the oldest card open and just put a small charge on it every few months.
2