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My uncle swore closing a card would tank my score. Did it?
My uncle works at a bank in Dayton and he told me never to close my oldest card, so I kept paying $95 a year on it for 3 years just to keep the account open. Finally called and asked them to downgrade it to a no fee card instead, and my score didn't move a single point. So was he right about closing accounts or just about keeping the age of the account?
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spencer78223d ago
Did your uncle ever explain why closing it would hurt so much? I get the age of accounts thing, since that's 15% of your score and closing your oldest card can cut your average age, but that's only if you actually close it. A downgrade keeps the account open, so the history stays put and you just stop paying the fee. Sounds like he mixed up closing a card with losing the age, when really the only hit from closing is losing that credit limit and raising your use rate.
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