Keeping Old Accounts Open To Boost Credit
Better Credit…Better Options
There are several things you can do to improve your credit score. Paying your payments on time, making sure you pay at least the minimum due on your accounts each month and disputing inaccuracies on your credit report will all raise your credit score. Many experts will counsel you to close unused credit card accounts and other accounts so you aren’t tempted to use these accounts and increase the amount of debt you have. However, did you know this can actually negatively impact your credit score?
A larger part of your credit score is your debt to credit ratio. When you are utilizing a high amount of the credit that lenders have offered to you, this can lower your credit score. It is wise to have small balances on your open accounts and pay them as agreed each month. When you close old accounts, your debt to credit ratio will increase, thereby decreasing your score.
Likewise, when you make several changes to your credit file in a short time, such as many inquiries from potential lenders, many new accounts being opened or many old accounts being closed, this will also lower your credit score. Building good credit is a long process and needs to be handled carefully. Don’t make too many changes all at one time. Take things slowly and you will see your credit score rise.
If you are looking to improve your credit score, CRE Credit Services can help. When you call us for your free initial consultation, we will help you go over your credit report and your financial goals and set forth a clear plan of how to reach your goals. We can also provide you with some free credit advice and education to help you stay on the right track. Contact us today for an appointment!