Will closing paid off credit card accounts improve my credit score?
In “Your Credit Score”, Liz Pulliam Weston explains:
1. Closing accounts can make your credit history look younger than it is. Your credit score factors in the age of your oldest account and the average age of all your accounts. So closing accounts, particularly older accounts can ding your score.
2 . Closing accounts reduces the total credit available to you, making your debt utilization ratio soar. Remember that the FICO formula measures the gap between the credit you use and your total credit limits. The wider the gap, the better. If you suddenly lower that limit by shutting down accounts, the gap narrows – and that’s a bad thing.
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Myra Golden runs a credit score reapir agency, a complete resource for improving your credit score. For credit score repair help, including tips for understanding your credit score, disputing items, dealing with collection agencies, getting credit card interest rates reduced, ways to legally improve your credit score and much, much more, visit: www.creditscorerepair.us
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