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staynerblewis

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Closing credit accounts
I have recently opened several new accounts (furniture) and will have them all paid off shortly. I want to close them after pay-off because I think it will improve my average account age. Let me add that I have a couple of accounts with high credit limits (about $20-40k each) that are old, and about 5 new ones with low credit limits (about $5-10k each). So it seems that (a) my average account life will go up a lot if I close the several new ones, and (b) at the same time my utilization % (by lower the denominator, which is the available credit) will not be impacted too much since the big and old cards stay... only the new (less than 1 year old) accounts go away. What do you think? Thanks

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Closing accounts is never a good idea.  Once you close an account, you automatically shorten the average age of your accounts, and your score drops.  Also, you will hurt your utilization by taking away the available credit that you are not using, and  your score drops.  Please read more at www.credit.about.com before taking any actions.  Best of luck!

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