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Author: Rhodnius Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 311074  
Subject: Re: Cancel Credit Cards? Date: 9/13/2005 2:19 PM
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I'll say it again, the more I look at the FICO scoring system, the more I feel it is flawed (flawed does not translate into broken).

Remember that the FICO system is entirely based on real-world data. The change to ignore open-but-idle accounts wasn't made by some conspiracy to get you to use your cards, or some middle manager looking to shake up the system. The change was made because real-world results showed that possession of idle accounts has minimal or no predictive value on whether a person will default on debt in the future.

You literally would need six digits of available credit to have the opposite problem of too much possible available credit.

This is correct. It's perfectly normal for someone with a responsible history of credit use to have been granted $50,000 or more in revolving credit lines. Credit access of six figures or more doesn't just happen by itself, though; you have to ask for it. The FICO system knows that may be a signal of a potential risky situation. It doesn't mean you're being irresponsible -- the purpose could be a business startup or real estate transaction or something -- but the FICO system knows that there is some amount of risk involved.

To answer the original poster's question: don't worry about the score because it won't move more than a handful of points either way. If you want to keep the cards around for potential emergency use, do so. If you'd rather have one less thing to worry about and eliminate the chance of something weird like identity theft happening on the accounts, close them.

- Erik
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