cougarguard.com  unofficial BYU Cougars / LDS sports, football, basketball forum and message board  

Go Back   cougarguard.com unofficial BYU Cougars / LDS sports, football, basketball forum and message board > non-Sports > Finances

Reply
 
Thread Tools Display Modes
Old 11-11-2008, 04:18 PM   #1
TripletDaddy
Senior Member
 
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
TripletDaddy can only hope to improve
Default Credit Cards and FICO score

I don't have a bunch of credit cards. I have never been huge on amassing loads of cards....In fact, I only have 3.....and one of them isnt in my name, as it is provided by the firm for T&E, so it doesnt even show on my credit report. We don't do department store cards, either.

Focusing on my 2 "real" credit cards......

1. My credit score is fine. It isnt over 800 like some, but still just fine (above 700). I'd like to keep it that way.
2. I have had both credit cards for about 8 years now.
3. I know that closing an old account can actually hurt your credit score

Here is where I need the guidance. One of the cards has an annual fee attached to it as part of a rewards program (airline miles). However, I almost never use the card and don't really care about the miles rewards. It is a waste to pay the annual fee, but I dont want to cancel.

Assume that the credit card company offers a no-fee credit card, sans rewards program. If I switch from my current card to the new, no fee version, does that constitute "closing" my account and will it ding my FICO score?

I called the company to ask but the customer service rep said that they do not comment on credit scores. I guess I could call one of the Big 3 and ask how they calculate, but does anyone here have experience with this?
__________________
Fitter. Happier. More Productive.

"Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte
TripletDaddy is offline   Reply With Quote
Old 11-11-2008, 04:25 PM   #2
Tex
Senior Member
 
Tex's Avatar
 
Join Date: Dec 2006
Posts: 8,596
Tex is on a distinguished road
Default

I am not an expert in this at all, so take this all with the appropriate grain of salt.

I have been told by people in the know that opening and closing credit cards causes only minor dings to your credit, to the tune of only a point or two.

I frequently open and close cards within a few months period just to take advantage of whatever freebie is offered (15,000 miles, 10% off first purchase, whatever). My credit rating is as yours, quite healthy. When I check my rating periodically, I do get the "too many cards opened in last 12 months" message, but since my number is well over 700, I don't really care.

Personal opinion: you're far worse to be actually paying out annual fees than accepting whatever minor hit you might take for closing a card.

My 2 cents.
__________________
"Have we been commanded not to call a prophet an insular racist? Link?"
"And yes, [2010] is a very good year to be a Democrat. Perhaps the best year in decades ..."

- Cali Coug

"Oh dear, granny, what a long tail our puss has got."

- Brigham Young
Tex is offline   Reply With Quote
Old 11-11-2008, 04:27 PM   #3
Surfah
Master
 
Surfah's Avatar
 
Join Date: Jan 2006
Location: F'burg, VA
Posts: 3,211
Surfah is an unknown quantity at this point
Send a message via AIM to Surfah Send a message via MSN to Surfah
Default

Quote:
Originally Posted by TripletDaddy View Post
I don't have a bunch of credit cards. I have never been huge on amassing loads of cards....In fact, I only have 3.....and one of them isnt in my name, as it is provided by the firm for T&E, so it doesnt even show on my credit report. We don't do department store cards, either.

Focusing on my 2 "real" credit cards......

1. My credit score is fine. It isnt over 800 like some, but still just fine (above 700). I'd like to keep it that way.
2. I have had both credit cards for about 8 years now.
3. I know that closing an old account can actually hurt your credit score

Here is where I need the guidance. One of the cards has an annual fee attached to it as part of a rewards program (airline miles). However, I almost never use the card and don't really care about the miles rewards. It is a waste to pay the annual fee, but I dont want to cancel.

Assume that the credit card company offers a no-fee credit card, sans rewards program. If I switch from my current card to the new, no fee version, does that constitute "closing" my account and will it ding my FICO score?

I called the company to ask but the customer service rep said that they do not comment on credit scores. I guess I could call one of the Big 3 and ask how they calculate, but does anyone here have experience with this?
Could you maybe threaten to close the account unless they wave your annual fee?

I have no clue how any of this is calculated and I doubt you'll be able to find any sort of calculation on how this works out. Credit is a mystery to me and I think it rather absurd that you don't have access to it but anyone else with your permission can see it and then not discuss it with you.
__________________
Ernie Johnson: "Auburn is a pretty good school. To graduate from there I suppose you really need to work hard and put forth maximum effort."

Charles Barkley: "20 pts and 10 rebounds will get you through also!"
Surfah is offline   Reply With Quote
Old 11-11-2008, 04:28 PM   #4
TripletDaddy
Senior Member
 
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
TripletDaddy can only hope to improve
Default

Wow, really? Thanks for the info. I wonder if anyone else can attest to the minor ding. I had always assumed it would really "hurt" the score, but admittedly, I have never heard it quantified before. In my head, I pictured something like a 30 point drop....which, now that I think about it, would be pretty severe.

If that is really the case, I will close it today. After all, if my score drops from 799 to 798, what do I care?
__________________
Fitter. Happier. More Productive.

"Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte
TripletDaddy is offline   Reply With Quote
Old 11-11-2008, 04:29 PM   #5
Tex
Senior Member
 
Tex's Avatar
 
Join Date: Dec 2006
Posts: 8,596
Tex is on a distinguished road
Default

Quote:
Originally Posted by Surfah View Post
I think it rather absurd that you don't have access to it but anyone else with your permission can see it and then not discuss it with you.
FYI, you can request a full report of your credit once a year from each of the 3 credit agencies at no charge.
__________________
"Have we been commanded not to call a prophet an insular racist? Link?"
"And yes, [2010] is a very good year to be a Democrat. Perhaps the best year in decades ..."

- Cali Coug

"Oh dear, granny, what a long tail our puss has got."

- Brigham Young
Tex is offline   Reply With Quote
Old 11-11-2008, 04:31 PM   #6
TripletDaddy
Senior Member
 
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
TripletDaddy can only hope to improve
Default

Quote:
Originally Posted by Surfah View Post
Could you maybe threaten to close the account unless they wave your annual fee?

I have no clue how any of this is calculated and I doubt you'll be able to find any sort of calculation on how this works out. Credit is a mystery to me and I think it rather absurd that you don't have access to it but anyone else with your permission can see it and then not discuss it with you.
I hadnt thought of that, but I am sure you can. In the early 2000s I told them that they needed to lower the APR or else I would get really mad. For whatever reason, they listened and lowered the rate.

We try to be pretty good at not carrying a balance, so truthfully, even the monthly APR isn't a huge issue to me. I just don't want to pay any more annual fees.
__________________
Fitter. Happier. More Productive.

"Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte
TripletDaddy is offline   Reply With Quote
Old 11-11-2008, 04:32 PM   #7
Tex
Senior Member
 
Tex's Avatar
 
Join Date: Dec 2006
Posts: 8,596
Tex is on a distinguished road
Default

For what it's worth, here's an interesting article on the topic from just a few months ago that came up via Google.

http://getrichslowly.org/blog/2008/0...a-credit-card/
__________________
"Have we been commanded not to call a prophet an insular racist? Link?"
"And yes, [2010] is a very good year to be a Democrat. Perhaps the best year in decades ..."

- Cali Coug

"Oh dear, granny, what a long tail our puss has got."

- Brigham Young
Tex is offline   Reply With Quote
Old 11-11-2008, 04:34 PM   #8
YOhio
AKA SeattleNewt
 
YOhio's Avatar
 
Join Date: Jan 2006
Posts: 7,055
YOhio is an unknown quantity at this point
Default

Just close the account and quit being such a baby about it.
YOhio is offline   Reply With Quote
Old 11-11-2008, 04:34 PM   #9
TripletDaddy
Senior Member
 
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
TripletDaddy can only hope to improve
Default

Quote:
Originally Posted by Tex View Post
FYI, you can request a full report of your credit once a year from each of the 3 credit agencies at no charge.
Does that include your actual score? I thought it was just the report (which is also very telling, to be sure).

Surfah, I would do as tex says and pull your report every now and then. In the past, I have found errors, including:

1. A series of unpaid medical bills for surgeries. I didnt have any surgery or medical bills, so that one was easy to get removed.
2. A late payment for some bank loan.....attributed to me but should have been attritbuted to someone living in Oklahoma. I had never taken out any such loan.
3. Department store charge cards that I never opened.

It is pretty safe to say that the credit agencies are not perfect and need a little help from time to time.
__________________
Fitter. Happier. More Productive.

"Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte
TripletDaddy is offline   Reply With Quote
Old 11-11-2008, 04:36 PM   #10
TripletDaddy
Senior Member
 
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
TripletDaddy can only hope to improve
Default

Quote:
Originally Posted by YOhio View Post
Just close the account and quit being such a baby about it.
Whatever you say, Mr Chapter 13.

Just because your score is shot doesnt mean I want mine to be that way.
__________________
Fitter. Happier. More Productive.

"Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte
TripletDaddy is offline   Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 07:37 PM.


Powered by vBulletin® Version 3.8.2
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.