Every time you apply for a retailer’s credit card, your credit score drops by as much as 20 points. Virtually anyone can get one of those cards so an application is a sign of distress rather than creditworthiness. In addition, these new accounts lower the age of your credit history, which also drops your score. Other credit-wise tips:
If you must close an account, close a newer one. You might be better off closing a newer card, even if it has a lower interest rate, and keep the older cards with a longer credit history, maintaining your score.
Control your credit applications. When you shop for a car, for example, the dealer may send a credit application to various financing companies. Multiple credit checks, in turn, can hurt your score. Instead, insist that the dealer run only one credit check, preferably with a bank, credit union or dedicated auto-financing company.
