Email: mail@creditrescuenow.com
Phone: (505) 899-1448
Fax: (505) 792-7785
The ins and outs of credit closure. A credit card is a helpful tool to aid in the ascension of any consumer’s credit score. A revolving account, such as a credit card, is the only way to establish length in credit history, which accounts for 15 percent of a person’s credit scores, they are eventually paid off and therefore no longer contribute to the evaluation of credit scores.
Just as obtaining a revolving account can boost credit scores by 15percent, closing a revolving account, even in good standing, will actually cost the consumer 15 percent off his or her credit score. Furthermore, a consumer can expect and additional 45-point loss for closing a credit card account it still has a balance. The credit score system does not differentiate between a closed account with a balance; they are both closed accounts with a balance, and therefore can both trigger this 45-point reduction of a consumers overall score.
The best way to put a credit card to work for you to pay off the balance, but keep it open and active by making a small monthly purchase and paying it off when the statement is received. This technique will help credit scores climb without incurring any debt.
Address: 2601 Wyoming Blvd NE Ste 117, Albuquerque, NM 87112
Phone: (505) 899-1448
Fax: (505) 792-7785
Email: mail@creditrescuenow.com
Have a Great Day!