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Ya know, the credit score system in america, while a good idea in principle, is really setup in such a stupid way.
One thing that really bugs me is one of the factors that effects your credit score is the age of your oldest account and the average age of your accounts. In other words if you cancel your oldest credit card, assuming thats your oldest account, your credit score will go down.
So for me my oldest account is 20 years old and its a really shitty secured credit card I got when I was building my credit. I had to pay 300$ to secure it (which i get back if I cancel) and it has only a 300$ limit, so it is useless to me. Moreover I have to pay 7$ every month to keep it. Worse yet the interest rate if i Put anything on it is insane. In every way its a bad investment and I should cancel it. But if I do that my credit will take a hit. So here I am forced to make a bad financial decision just to keep my credit score maxed out.... so fucking stupid.
@freemo
Buy a cheap car, or lease a new car. And after that close ty the accounts you don't want
@pthenq1 Not sure how that would help. It would still lower the max age of my account which would be a factor against my score.
The car itself wont boost my score either as I already have well established credit and loans of various types so it wont have a positive effect. In fact since it will count as debt might even bring me down a bit.
@pthenq1 yea I have a mortgage, several credit cards, and had a car loan up until recently, plus i have several charge cards. I didnt take a hit when my car loan was paid off because my other loans were sufficiently diversified.
@freemo
It builds super quickly.
I have no credit cards (I didn't have and I will never will). When I wanted to buy a house, I started buying 3 cars on payments. 18 months later my score was: 728. Tadaaaaaaa! LOL.
Now I need a bigger garage. 🤔
@freemo
Oh. You have monthly payments already. Yes, when you close your account, your score will be impacted. But it will recover if you have already monthly payments.
If you could take the hit, then all good.