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NorCalCoug · 11-11-2008, 09:37 PM

The larger driver in terms of a "ding" on your credit report will be the utilization of your revolving trades. Higher utilized customers tend to be significantly higher risk. For example, you have 2 cards with $10K limits and carry a total balance of $4K on one of your cards making your utilization 20% ($4K / $20K in total credit available). You decide to close the other card and the next time the bureaus refresh your scores your utilization suddenly calculates at 40% and you appear as higher risk thus the "ding" to your bureau score. If you convert and keep your available credit limit then the impact should be minimal. The age of your oldest trade is also fairly important but not as much in terms of negative impact IMO. If your other card is older then this may be of little or no consequence.

All in all, I think the impact would be minimal if you convert the card.

11-11-2008, 09:37 PM	#22
NorCalCoug Junior Member Join Date: Jun 2008 Posts: 37	The larger driver in terms of a "ding" on your credit report will be the utilization of your revolving trades. Higher utilized customers tend to be significantly higher risk. For example, you have 2 cards with $10K limits and carry a total balance of $4K on one of your cards making your utilization 20% ($4K / $20K in total credit available). You decide to close the other card and the next time the bureaus refresh your scores your utilization suddenly calculates at 40% and you appear as higher risk thus the "ding" to your bureau score. If you convert and keep your available credit limit then the impact should be minimal. The age of your oldest trade is also fairly important but not as much in terms of negative impact IMO. If your other card is older then this may be of little or no consequence. All in all, I think the impact would be minimal if you convert the card. Last edited by NorCalCoug; 11-11-2008 at 09:39 PM.