Originally Posted by
roki
A little update here. Despite only being 4 cards, this last app-o-rama took a pretty big hit on my credit score. I dropped from the 760-780 range on all 3 reports to 700-715 on all 3 reports. I noticed one thing on all three reports is that it shows my AMEX as 100% utilized, I'm assuming because I don't have a preset spending limit. I only have $200 on the card, so this seems absurd. Any input on this?
Also, looking to possibly purchase a home May 2013, so I'm assuming it would be wise to not do any more apps before then, correct? I'm hoping I have no problem getting my credit score back up to the high 700s. Would closing out my Chase SW or AMEX PRG before annual fees have a negative effect on my score? I expected a hit, but not a 60-80 point hit.
The bulk of your hit is a result of 100% utilization and luckily it can be fixed pretty easily. Either don't use the card for the months before the banks will be pulling your credit or use it and pay off the balance before AMEX reports to the agencies. I believe AMEX report some balances at a time other than statement close so try to figure out the pattern.
Utilization would be the biggest concern with closing out the SW & PRG cards, but their "history" should stay on your report for 10 years. I think you'll be ok closing them.