Disasterous change to my credit score looming!

September 8, 2010 at 8:07 am (credit cards, credit score, Uncategorized)

A credit score is partially based on how many cards you have, the credit to debt utilization, and the averge length of credit card history. For many years, I had only a Citibank card (for 18 years 8 months!). I just recently closed it. It has not yet been reported to the credit agency that Credit Karma uses (which is TransUnion), which is the way I check my credit score, so I’m waiting for the ax to fall and see how poorly that will impact my rating.

A few months ago, I had 3 credit cards and my score was 794. Since then, I opened 2 new cards (see my previous post on that subject for why), which dropped my score to 787 (6 points). Last month I closed Citibank which will result in my stats becoming a fiery burning wreck.

Let’s see what will happen:

Number of Cards: 5 (pre-Citibank closure) – 4 (post-Citibank closure)
Average years open:  5 (pre-Citibank closure) – 1 (post-Citibank closure)
Avail Credit: $41,500 (pre-Citibank closure) – $25,500 (post-Citibank closure)
Debt to Credit Ratio: 6% (pre-Citibank closure)9% (post-Citibank closure)
Credit Score:  787 (pre-Citibank closure) – PENDING (post-Citibank closure)

It will be interesting to see how these changes will affect my credit score. What’s your guess? I think it will drop into the 760s.

I now have:
Citibank (no more! Closed Aug, 2010!!!!)
Discover (leftover from a 0% transfer offer)
US Bank (non-REI, leftover from a 0% transfer offer)
BECU (low 6.9% rate)
US Bank REI (high rates, awesome paybacks, will pay in full every month).

Ugh. Big ugh. Unavoidable, and I kinda don’t care, but still!


1 Comment

  1. Louise said,

    I’ve never understood how having more credit cards increases the credit score, it’s different over here. Well done on paying off citibank! they are first on my hit list.

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