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Possible downside (credit report wise) of a short-term Amex account

Possible downside (credit report wise) of a short-term Amex account

Old May 28, 11, 10:32 pm
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Possible downside (credit report wise) of a short-term Amex account

I know this is unwise in principle but does anyone know what the possible/typical ramifications are, credit-report wise, if one signs up for either an Amex charge or credit card and a few months later closes the account?
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Old May 29, 11, 4:27 pm
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Originally Posted by jspira View Post
I know this is unwise in principle but does anyone know what the possible/typical ramifications are, credit-report wise, if one signs up for either an Amex charge or credit card and a few months later closes the account?
In order to give you an educated answer, you would need to give some additional info such as debt ratio, balance-carrying, etc. Generally, churning does have a short-term hit of anywhere from 10-50 points, depending on the factors mentioned above, as well as other mitigating circumctance.
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Old May 29, 11, 5:42 pm
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Originally Posted by Ritz View Post
In order to give you an educated answer, you would need to give some additional info such as debt ratio, balance-carrying, etc. Generally, churning does have a short-term hit of anywhere from 10-50 points, depending on the factors mentioned above, as well as other mitigating circumctance.
Thanks very much, Ritz, for the general answer. My debt ratio is very low (the way I calculated it, it's 6% of monthly income), I have one credit card balance I am carrying (I was tempted by 1.9% for life so I have a 16,000$ balance on a 33,000$ line), and since I'm new at addressing these types of questions, I'm not sure if there's any additional information I should be providing.
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