Quote:
Originally posted by motion
Does anyone know, positively, that cancelling a credit card or two will hurt/help? That's an option, just from a simplicity perspective.
The inquiries may, in fact, be killing me. I've heard that an inquiry can cost you 3-5 points. If that's the case, might I be looking at 20 points or more because of the inquiries? Possibly, I should start writing letters to the inquirers asking them to pull the inquiries. ???
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The top factors contributing to your score not being higher are listed on your credit report next to your score. I suspect the top two will be "too many recent inquiries" and "too many recent accounts." Supposedly, the top two factors carry 70% of the weight and the bottom two 30%.
It's my understanding that multiple mortgages or installment loans have no adverse effect on your score. I've heard from one of the bureaus that your theoretical highest scores are generated when your revolving balances are about 5% of your credit limit (even better than a zero balance), and not combined (card by card). Multiple inquiries made for the same purpose within 21 days of each other should count as one inquiry.
Cancelling a card might help you if you have a score factor reflecting "too many revolving accounts," or some such. Cancelling an old card can hurt your score.
Creditors will not remove inquiries. "Soft" inquiries that don't show up on a lender's pulled credit report (but do show up on a report you request directly) don't affect your score. The score you get directly from the bureaus may not match too closely the scores a lender will get, either. Supposedly inquiries do lose you a few points each, not counting multiple ones made in a 21 day time frame.
Where are you getting your score, from a mortgage lender or from the bureaus as a consumer copy?