I'm planning on buying a house sometime in the Winter of 2020 to spring 2021.
Currently, my credit score is about 770 and I have the following open credit lines:
- A 2.5 year old $25,000 Prosper loan with a $12,000 balance with 2.5 years to go.
- A gold American Express that has been open since 1998
- A First National Bank American Express with $0 balance, $12,000 limit open since 2013
- A Visa card with $0 balance, $4100 limit open since 2013
- A Citibank Mastercard, $11,000 balance, $25,000 limit, open since 2013
- A Citibank Mastercard, $0 balance, $11,000 limit, open since 2014
So, about $77,100 available of which $23,000 is used or about 30% utilizaton
I am paying down the open lines and should be finished with that by the end of the year.
I never use the $4100 Visa or the First National Bank AmEx. And, I received an offer for a $10,000 limit Visa at %9.15 from my credit union.
That is a substantially better rate than any of my other cards and I was considering closing both of the unused accounts. This would result in:
$71,000 available, $23,000 used and 32.39% utilization.
So, doing this will increase my utilization, lower the average age of my credit, and result in a hard query on my account.
I have 2 questions:
- Is there a way to determine how much doing this will lower my score?
- If I do it, will my score recover by the winter of 2020 when I start looking for home loans.
Any insight that you can provide would be appreciated.