Quote:
Originally Posted by John 070
My understanding is quite the opposite. I used to always cancel unused cards. Now my available credit has to be almost 200k. I routinely charge about $3k/mo., and pay it off and carry no balance. My score was pretty good when I refinanced.
The idea is that say you have a $30k credit card, that has a $0 balance, and has been in good standing for 84 mos. When you cancel it, you lose 84 mos. of positive feedback, and your score goes down.
Nobody can verify 100% that the above is true, it is what I've heard.
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I don't believe you "lose" that history. It's just frozen at 84 months. Your credit history is what shows up on your credit report.
If you actually lost the history, wouldn't delinquent debtors just cancel and erase their history?