Author Topic: Credit report and length of accounts  (Read 1406 times)

Offline YOSEF

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Credit report and length of accounts
« on: May 27, 2010, 07:38:48 PM »
Hey guys,
I know it helps to have accounts open for as long as possible to show a good history.
Given that, if I switch a card to a different one (ex. citi aadvantage to regular citi) does that still go down as the old account?; if I build a two year history with the first, do I lose it when I switch and start over?
Thanks a ton!!

Offline gozalim

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Re: Credit report and length of accounts
« Reply #1 on: May 27, 2010, 08:13:16 PM »
pretty sure you keep the record

Offline elikay

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Re: Credit report and length of accounts
« Reply #2 on: May 28, 2010, 11:20:26 AM »
you keep the history BUT: you could lose points on utilization ratio, and with time a closed account is worth less points (although I think that is pretty much the same with an active card, just there you have recent history too).
Obviously nothing is clear cut as its all a trade secret.

Offline Avid Reader

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Re: Credit report and length of accounts
« Reply #3 on: May 28, 2010, 01:54:41 PM »
you keep the history BUT: you could lose points on utilization ratio, and with time a closed account is worth less points (although I think that is pretty much the same with an active card, just there you have recent history too).
Obviously nothing is clear cut as its all a trade secret.
Can you explain this utilization ratio thing. Does it mean I lose points for not using my card?

In answer to YOSEF, the CC companies have changed my account numbers every time I made a card product change. Last time I saw them do this and I checked my report, my new account number had zero history even though it was several years old- not good. Keep one (no annual fee) account always open with the same number and a bit of utilization  and preferably don't play any games on it that may shut it down.

Offline YOSEF

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Re: Credit report and length of accounts
« Reply #4 on: May 28, 2010, 02:15:39 PM »
Avid reader,
thanks a ton for the straight answer.

Offline elikay

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Re: Credit report and length of accounts
« Reply #5 on: May 28, 2010, 02:51:05 PM »
My point stands. Earlier this year one of the heads of FICO? explained that contrary to  what was previously thought, your history is NOT lost when you close an account rather it continues to affect your score for as long as it remains on you CR. But obviously if you change a CC it won't show the history on that number!
As for utilization ratio it means the percentage of available credit which you use. Closing an account increases that percentage which is not good for your credit score. This is also where the problem of WMC and VS which have revolving credit and do not report CL to reporting agencies.