Monday, March 8, 2010

Closing Your Accounts

When you have too many accounts that are open it can affect your credit negatively. With the current credit models too much credit can be a warning sign to your creditor that you are just getting by. Your credit can be hit even worse if your balances on your revolving credit are too high or if you have opened any new credit.

So how do you raise your scores in this type of situation?

The answer is: very slowly. Closing out a bunch of credit cards at once can drop your scores tremendously. You are better off paying your cards off and leaving them open but if you are the type of person that are too tempted to use the credit card again then you need to close your cards out over time. Close out your accounts over time by closing each one every month or two. Also, remember that you still need some credit to have credit scores so don’t close everything out. Leave a couple credit cards open so you don’t end up without any credit at all.

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