Question about using credit lines

[Jacob Casarez]

I currently have 4 credit cards and a personal line of credit. I want to cancel 3 of my credit cards and end my relationship with a particular for profit bank. However, I am curious if this would at all effect me when I go to to get a loan on a multi-family property? The ones I am looking to cancel I have the longest history with. I use my lines of credit very responsibly and never go past 20-30% of available limit. Any info would be much appreciated, thanks!

[Karen Johnson]

Jacob Casarez - closing your oldest line of credit is likely to have a negative effect on your credit. It reduces the average length of your credit history, which can be a negative. I would recommend that you don't make any changes to your credit (other than paying down any balances) until AFTER you go to get your mortgage pre-approval. Your lender will tell you what actions you can reasonably take with your credit between pre-approval and mortgage commitment. You may also want to sign up for Credit Karma (www.creditkarma.com). They let you simulate how your credit score is affected if you make certain changes - close a card, pay down debt, etc. Credit Karma is free and reliable. You may also have a similar service through one of your credit cards (e.g. I noticed my Capital One card allows me to do something similar). Hope this helps.