Wildcat_1 wrote:I was always under the impression that once credit lines were established etc that you really didn't want to do too much closing as ultimately would/could impact credit score.
The thing is that "too much" varies from person to person. All things else being equal, a thicker credit file is less likely to be impacted than a thinner credit file. In the last year I've closed 4 card accounts and opened 5. A oversimplified understanding of causality would probably lead one to think that my scores have tanked as a result but they're better than they have ever been (FAKO's anyway -- haven't been watching FICO).
It's really not quite so straightforward so it's difficult to give generalizations that will hold true in all situations. Another person could have done what I did have have scores tank. It's not just opening and closing accounts that impact credit. One always has to consider every factor at play. In my case, utilization has drastically dropped. The balances that I have now would have been 80% utilization for my credit limits at the beginning of the year. Now they're only ~10%. AAoA wasn't hit too hard since 2 of the new cards are AmEx cards backdated to 1998.
Wildcat_1 wrote:and really what the true impact of closing accounts is on your score.
You can easily calculate the impact on utilization of closing an account. As for AAoA, closed accounts will remain on your file for 10 years. We really can't say that "closing X means you'll lose ZZZ points". The exact impact is going to differ as credit differs from person to person.