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How to Cancel Credit Cards And Not Harm Your Credit Score

Absolutely nothing is bad with getting credit card accounts, as long as you utilize these accounts sensibly. But what if you’re wanting to reduce your number of credit cards? Here’s the proper way to close your credit card. For more tips read http://www.newhorizon.org/credit-info/how-to-close-old-credit-cards-without-damaging-your-credit-score/<br><br>Want a copy of your credit report here http://www.newhorizon.org/Info/creditreports.htm<br>

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How to Cancel Credit Cards And Not Harm Your Credit Score

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  1. How to Cancel Old Credit Cards And Not Harming Your Credit Score by: www.newhorizon.org

  2. Using your credit card accounts and maintaining good credit rating usually leads to a borrowing limit increase and other credit card offers. Absolutely nothing is bad with getting credit card accounts, as long as you utilize these accounts sensibly. What’s more, bad credit cards have aided lots of people re-establish their credit and improve strong scores - but what if you’re wanting to reduce your number of credit cards?

  3. Terminating credit card accounts that you no longer use may seem smart, particularly if you’re trying to streamline your finances. On the other hand, there is an incorrect and a proper way to cancel down your accounts. Credit ratings depend on several factors, for instance the the time of your credit history. The more time you’ve had a credit card in your name, the better your personal FICO credit rating. So here’s the proper way to close your credit card:

  4. Terminate the Newest Card Terminating or eliminating an older card may cause some credit damage, on the other hand, you can reduce the harm by keeping your oldest account open and closing your newer accounts. Closing the oldest account can help reduce your credit score, but if you were to keep this account open and terminate another account, the duration of your credit history continues to be same. Thus, helping maintain your credit score unchanged. Read your statements or call your credit card company for information regarding the date that you opened your account.

  5. Lowest Borrowing Limit It can also help to close the account with the least borrowing limit. The larger the gap between balance and your borrowing limit, the better. Accounts with low limits ($300 to $500) increase the the risks of having a higher utilization ratio, which could harm your credit rating. On the other hand, for those who have a credit card with a higher $1,000 borrowing limit and you maintain a balance of $200, your utilization ratio is lower than 30 percent, which helps boost your score.

  6. FOR MORE CREDIT CARD TIPS READ http://www.newhorizon.org/credit-info/how-to-close-old-credit-cards-without-damaging-your-credit-score/ GET A COPY OF YOUR CREDIT REPORT http://www.newhorizon.org/Info/creditreports.htm

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