Need CC advice

iVillage Member
Registered: 06-18-2004
Need CC advice
2
Tue, 11-16-2004 - 12:38pm
I just called one of our cc companies to ask if they could lower our rate. It is currently 12.5% variable. They said they could to 6.5% variable (prime + 1.75%) but the kicker is they would close the account number and give us a new number. This would show up as a closed account on our credit report and I think would hurt our FICO score since it is the longest cc account we've had open (it's been open since 1992). We have another account (line of credit) that has been open since 1994 or 1995 with the same company.

What would you do? Any advice. Should we keep it open so it won't hurt our FICO score-- I ran the numbers and with what we owe, we would only pay it off one month sooner with the 6% reduction or should we opt for the 6% reduction and close it out?

Any thoughts/suggestions would be most welcome.

Kellie

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
In reply to: t09w
Tue, 11-16-2004 - 12:50pm

Kellie -


One small factor of your credit score is the "Length of Credit History".

All my best,
Danni

iVillage Member
Registered: 07-26-1999
In reply to: t09w
Tue, 11-16-2004 - 1:01pm
I had a Visa with one company for about 10 years, and it was my longest source of credit. I had to have several different numbers on the card over the 10 years for various reasons: security issues (closed the account because the number had been compromised), and changed different types of Visa card with the same issuer. I don't think any of the times my account was closed and re-opened under a different number had any effect on my credit report/score. You will still have an account with the same card issuer, it's just a different card number. That's just my two cents from my experience; your best bet is to ask the company whether the change of account number will effect your credit score.