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Question By
jasontyler93

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1 Person Helped
pay off cards score goes down. cancel oldest card score goes up, does it hurt to not accept offer
have 3 questions I'm hoping someone can answer:
1. Why does my score drop when I lower my utilization?
2. Should I get a card I don't really want/need because I'm already approved?
3. Why is cancelling my oldest credit card beneficial to my score?

I used to have high 700's when i was 18 with perfect payment history, but i ended up going on vacation for a year so i was unable to pay my bills. 4 out of 7 of my accounts went into collections and a student loan did as well. I'm 23 now, I havent had any kind of credit since then and havent though about it, but at the start of february i figured i better start working on it. On February 1st I had a 508 when I first looked at it, and I applied for the capital one secured card but got denied and my credit went down to 504. Got an opensky credit card for $350 a couple days later, and then got a wells Fargo secured card on February 14 with a $300 limit. Both cards started reporting early March (this month) and I now have a 596. My credit utilization is 30% and if I pay it down to 0-1% my score drops down to a 536 (60 points), if I pay it down to 2% my score increases to 606 (10 points).
Also my mom put me as an Auth user on her rewards card w/ $10,000- long history and very low balance. The simulator shows my score will go up about 50 points (for a new card-not one with history) and It should start reporting this month. I decided to take another chance and I got approved for the capital one secured card this time. I have until about June I think to make the deposit but I don't really want it. Will it hurt my score if I just don't accept the offer, should I just open it anyways because I wasted an inquiry on it? Also when I simulate closing my oldest credit card (1 month) it shows my score going up 15 points, does anyone have any input?

Sorry this is a long explanation but I am a little stumped due to the scenarios
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Top Contributor
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First, ignore Vantage scores. Second, most definitely ignore the faulty score simulator used for Vantage. You should only focus on FICO scores and ways to appease the FICO scoring systems. Keep the accounts you have open, I am certain that closing one will damage your credit. It is up to you on the Capital One card, if you don't want it, don't take it, nothing will change at this point. I do advise you to keep growing your number of open and active accounts, but you are good on Secured accounts now, work with them for a few more months and you should be able to get a basic Unsecured card. You also need to be working on removing negative info from your reports, to address that, ask a new question with some info, just DO NOT include personal info. Sounds like you are on the right track though, but focus on FICO. Following Vantage will lead you to problems.

Top Contributor
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When your oldest account is 1 month old that does not really factor into anything yet IMO.  If you are closing the account with the higher available and still have the same spending it would increase your utilization.  If you are trying to figure out what your score will do using the CK simulator I would advise against it.  I have not found it to be even relatively accurate.

If you have no use of your credit (0%) that looks worse than having say 3-10% utlization consitently with on-time payments.  I would not expect your credit score to grow overnight.  Keep up the good practices with the cards you have and in a year or so apply for a non-secured line of credit and keep building from there.

I would not accept a secured CC that you do not plan on using.  You would be better off paying for more stuff with cash and keeping utilization closer to the 3%-10% range (That is the sweet spot from my experience).

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Helpful to 0 out of 2 people

Appears you have not yet taken the time to read the articles here so you can learn how credit really works.  Closing a card will hurt your score, lowering utilization doesn't hurt unless it is due to paying before the account closing date.  You need to build your own score since you are an adult.  I'm[ on am fixed income and now have a better score than when I was working thanks to the knowledge gained from this site,.

Reply by
jasontyler93

2 Contributions
1 Person Helped
Helpful to 1 out of 1 people

jwsister,

I have spent a lot of time on this site, and a lot of other sites like credit. com and nerdwallet. I know normally that closing your card will lower your score, however my  score goes up and it says "oops that doesnt look right" but it goes up on credit wise as well. I was just trying to see if anyone has seen this type of thing before or if they possibly had any ideas as to why it is doing that. And in a lot of articles/forums there is a lot of instances where people state that bringing their utilization down to zero dropped their scores. I do not know if they are telling the truth or theres something they left out, but the simulator is showing that that same thing will happen to me if i go to zero. I understand credit very well, I raised my score ~100 points within a month, I sold cars for a while and dealt with the financing aspect of it often. I also work for a company that does updates credit supplements, does rapid re-scores, along with many other things and is considered one of the very best at mortgage and credit information. 

I took the time to actually ask a question for once istead of just figuring it out down the road, andI was hoping to get some actual opinions/advice about my questions. But thank you for assuming I havent taken countless hours reading articles or researching scenarios. Thank you for telling me to get my big boy pants on and build my own credit, that was very helpful and inspiring, I will definitely be posting another question in the future due to the extremely intuitive feedback.

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