I Have a Suggestion…

I Have a Suggestion…

  Glad you’re back! Last time we talked, I promised to offer a suggestion for managing your credit accounts.

The right thing to do is to keep long standing accounts open even though you don’t use them any longer. My suggestion is to charge a small amount every few years and when the bill comes in, pay it off entirely. This will keep the account active so the creditor doesn’t decide to close it for you for non-activity. In a few instances, I’ve instructed borrowers who have closed accounts right before getting their loan to re-activate them immediately, after ensuring that the creditor will re-establish the history. If the creditor won’t re-establish credit history, then I recommend leaving the account closed because beneficial credit history has already been lost. Accounts that are in the open section of your credit report will have the most positive effect on your score, especially if they have a very small balance to limit ratio. Once the account moves into the closed section of a credit report, the history is lost. History makes up a big portion of your overall credit score. Visit www.southernoaksmortgage.com