Closing Credit Accounts

Closing Credit Accounts 

Assumptions can cost you dollars and time when you’re in the market for a loan. There are deadly mistakes you want to avoid! Some of them include your credit accounts. Listen closely…

It would seem logical that if you have many open trade lines with moderate to high credit limits, closing some of them would improve your score. The theory is that since you have no use for this card or credit line, why keep the account? It seems to make sense to close it. One would assume that your score would improve since you now have eliminated an account that you could have, in an instant, borrowed against entirely. Well, the reality is different and is two-fold.

There is a huge misperception that exists regarding the closing of existing credit accounts in an effort to improve credit scores. Check my next post to discover what it is, or email me directly at jeff@somloans.com Trust me, you want to know this if you’re trying to get a loan!