Some experts advise that you use all your credit cards at least once a year so that they appear as active, on the belief that inactive accounts do not help your score. Of course, FairIssac and the other scoring systems won't divulge their formula's, so it's all a guess. But it can't hurt to use each card once a year, so long as you don't forget to pay the bill (I have all of mine set up for automatic payment through online banking).

1)your credit score and FICO score are two different things.

2)If your FICO (as you state) is in excess of 800 any credit card company will instantly approve you for at least 50 grand credit line (usually well into 6 figures)... $15 credit line with an 800+ FICO doesnt add up.

Well, Suze Orman says it's OK, as long as you resist the temptation to rack up debt on them all. I have a couple of cards I got just to take advantage of the 0% interest on transfers, using that to pay off a car loan and beat the interest. I haven't cancelled them yet because Suze says having that open credit actually helps your credit score.

That's not necessarily true. One can have a high FICO score without having a huge income. A credit card company looks at income when determining credit lines. I think that you're right than most credit card companies will give a card to anyone with an 800+ FICO score, but the amount of the line of credit may not be so gigantic as you imagine.

I am curious about this--- when you convert a card to a no-fee card or something, does that not report as closing one card and opening another? Or do they do it through the same account (thus your history and # of accounts remains the same)?

Also-- does canceling a card hurt you for any other reason than lowering your amount of available credit and possibly shortening your overall credit history length? (which would not be the case if it was your newest care-- it might theoretically help?)

I think this depends on the card issuer. I've had it happen both ways.

I think those are the two main effects. However, the exact formula is not released, so it's hard to know exactly.

Any resource which outlines which companies report which way?--- I would rather not rely on what a CSR tells me

yes it is. to begin with, FICO scores DO NOT know how much money you make or whom do you work for. Your CREDIT SCORE might be alerted whom do you work for from the agencies but not if you make minimum wage or 50mm/yr. The way FICO scores calculate your income varies, however it all begins with what your lender is willing to lend YOU (i.e. credit line). So if your have a 6 figure credit line w/ 1 CC company, what do you think other CC co's are willing to lend you? at least 6 figures and probably more bcs they want to compete for your business.

Case in point: Since joining FT ive opened +/- 6 cards STRICTLY for sign-up points... they all matched my highest long standing CC credit line. AND, when SPG AMEX saw I was serious, gave me a call and TRIPLED my line... all i had to do is spend a few grand a day for a couple of months and pay the bill in full... voila'