I've been reading through many websites about bettering my credit report from what it currently is. My report isn't too bad, but I just want to make sure it is the best it can be. My question is this... should one close unused/seldom used department store cards to better the credit scoring on the report.....or should I keep them open to perhaps put me in a better flexiable percentage rate? Any advice on what is a good point/rate bracket to stay in and how to figure credit report points.
If you know you aren't going to go on a spending frenzy and get yourself in debt, I'd keep them open. They will help increase your debt ratios, and allow you to exercise your credit for better rates, etc.
Well... both are correct, but for opposite reasons.... If you look at your credit reports, they never show what your interest rates are... so any new creditors don't know either. You want to keep the accounts open for two reasons... One, they're a positive tradeline that continues to build age every month. Two, they help with your credit usage ratios which seem to be the main focus of credit scores. We've seen time after time that payment history doesn't matter in scoring... it's the percentage of the credit you have used vs. your overall limits. My advice.... keep all your accounts open and ask for credit limit increases... If you have $10K of debt on $11 limit it's not good... but if you have $10K debt on $20K limit, it's good.... $10K debt on $30K limit best.... understand? Welcome... always great to have a new face here!
Nope, I'm not spending on them nor plan on it. How many good standing credit accounts is a good rule of thumb to have and how many is too many to have that could damage instead of doing good for my report?
I've seen most places 3-4 credit accounts (visa, mc, etc) and one retail (mervyns, etc) are ideal. I personally wouldn't have more than 6 accounts. It all depends on your situation though. Just a rule of thumb.
Matty's pretty smart for a 17 YO.... Although, I don't think anyone would say Donald Trump has too many accounts... The idea is to get the credit limits up on them... 6 accounts with a credit limit of $500 is nothing compared to 6 with $5000.
