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Answers (5)
- Liberty Mortgage
- Contributions:470
Point blank- I would pay down the card and leave a $10.00 balance- Do not close your account by any means- Doing so will drop your score. The only time a person would close out an account is if they have more than 10 open tradelines.
- Harold Sharpe, "Harold Sharpe"
- Contributions:24
HI David,
Paying off cards in full is not the way to raise your credit score.
Paying them down to 10% is far better.
Think of it this way.
You are a bank
You only collect or make money off of interest and purchases.
Would you rather loan to the people who pay it off each month?
or
Would you loan to the people who pay with interest each month?
on your credit cards, and auto loans keep them under 50% of the limit at all times if possible.
then keep them under 33%, 30% 25% 20% down to 10%
like it or not your credit score goes up when you have 10% of your max or 10% of you limit.
You should always consult an accountant for advice.
Closing the accounts is not a good idea unless you have too many lines of credit. Having 3-9 lines of credit is good.
Harold Sharpe
So Cal Homes Realty
Paying off cards in full is not the way to raise your credit score.
Paying them down to 10% is far better.
Think of it this way.
You are a bank
You only collect or make money off of interest and purchases.
Would you rather loan to the people who pay it off each month?
or
Would you loan to the people who pay with interest each month?
on your credit cards, and auto loans keep them under 50% of the limit at all times if possible.
then keep them under 33%, 30% 25% 20% down to 10%
like it or not your credit score goes up when you have 10% of your max or 10% of you limit.
You should always consult an accountant for advice.
Closing the accounts is not a good idea unless you have too many lines of credit. Having 3-9 lines of credit is good.
Harold Sharpe
So Cal Homes Realty
- Lisa Johnson, "LJohnson209"
- Contributions:1
Closing the account will drop your credit scores. If you have older accounts you are not using or have not used for a year or more, you should use them for one transaction and pay it off when you receive the statement. The older the account the better impact it has on your scores. Credit card companies are even trying to close out cards on people with great credit but low activity.
- Alan Milani, "PointFreeLoans"
- Contributions:45
You don't have to close the accounts. If you have excessive number of credit cards, then you might have to close some. But if you have only a few credit cards, you don't need to close it. Just paying off the balance should help you :-)
Good Luck.
Good Luck.
- Carl Henker, "Carl Henker"
- Contributions:755
Closing the account could have a negative effect on your credit. Pay it to zero and leave it open unless you are trying to avoid an annual fee.
if I pay a credit card down in full should I close the account to bring up my score.
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