I encounter a lot of consumers who are hanging on to sub-prime credit cards because they fear they'll lose the good payment history and age associated with the credit card right away.
That's not true. FICO's length of age accounts for up to 15% of our credit scores and looks at the age of an account on both open and closed accounts. As long as that account is on your credit report it will be calculated into your length of age.
Payment history accounts for up to 35% of our credit scores, and considers the history on open, closed, positive and negative accounts.
A closed account will remain on your credit report for 10 years from the date you closed it. So the age and payment history will factor into your credit scores for 10 years. Plan accordingly 🙂
The amount you save by getting rid of a card that is costing you per month or per year, however, is immediate! As soon as you are able to obtain prime cards with low to no fees; get rid of those other cards immediate. Have a creditor offer YOU incentives for being their customer.
Hope this helps!
Credit Classes Start October 9th!