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EML298

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Clarification of best steps to improve credit score (re: age of accounts vs. utilization rate)
Thank everyone in advance for their input. I've read others' similar questions and responses, but think my question is slightly different.

BKACGROUND:
My husband and I had very good credit (between 760-800 depending on agency), and bought a house in 4/2011. In October 2012, I was transferred across the country. Because of several factors, we qualified for and were accepted to the FHA short sale program. That process concluded in 4/2013, and our scores (which were down to 730 after buying the home), dipped down to about 640-660, depending on agency. We also had a great deal of credit card debt and private student loans (over $50,000 to each).

In the past 6-7 months, we have paid off all the private student loans and all the credit cards. Our score is slowly improvating, now @ 701. We have three general credit cards and five store cards. We currently only use one card, paying it off each month. We make sure to use each of the others at least once every couple of months, and then pay off.

QUESTION:
Would it be advisable for us to close the most recent card addition? Seems like it would improve the "age of credit history" to lose the youngest card, and the card was fairly small (through a store), which makes it about 3% of our available credit. Since we are not carrying balances, we have a substantial amount of open credit available, so we have a very, very low credit utilization ratio at any given time. SO - would it harm us to close this card?

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I'm pretty sure the average age of accounts is less of a factor than your debt to limit ratio.

What is the limit on your youngest card? By eliminating that card, your debt to limit ratio goes up and hurts more than having a "newer" card.

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