credit card and new mortgage (interest rate, rate, loan, closing)

[therewego]

Hopefully in the next 5-6 months we will be selling our home and getting a new home/mortgage. Yesterday, I got a notice that one of my credit cards' interest rates is rising from 7.99 to 11.99%. I can decline it and it stays the same but the account will be closed. That is fine with us as we do not use it anyway but do have a balance on it. I'd like to know how this will effect the FICO score that the account is closed when it comes to getting the new loan. Thanks!

[DvlsAdvc8]

Closing an account does adversely affect your FICO score, but its not huge. It has more impact if it is a longstanding account (say, your oldest credit card).

Also, just FYI, if you have a lot of credit card debt, it is better to have balance spread across multiple cards than keep on one card. Another thing that goes into the calculation is the percent of available credit used. Its generally best to use less than 30% of the limit on two cards than it is to be using 80% of the limit of one card.

[bentlebee]

If you pay off the balance and don't use the card or pay it off in full every time, why should you close it? I have no clue what my interest rate is for my cc since I always pay them off in full!