Keep Credit Score Good Pay Off Card Debt
A couple of weeks, I told the story about the couple who paid $ 88,000 of credit card debt in three and a half years. After this story, I received an email from a couple who just paid $ 80,000 in debt and loans. Congratulations to them! Another example that the credit card debt can be repaid once you put your mind to it.
This couple has asked an interesting question about how they could improve their credit score after paying all that debt. What should they do to cut their credit cards, keep them open or officially cancel them?
My answer depends on whether you are likely to misuse of credit cards from this point.
abuse of credit card is like a drug, if the card is available, it could be misused. Even if a credit card is reduced by half or sitting in the freezer, the account is still active and the number can be used / abused for online shopping as an airline ticket around the world or on a widescreen TV. My recommendation to potential aggressors is officially cancel all the cards after they are reimbursed by sending a letter to each company. How does this affect their credit score is less important than the possible misuse.
For those who will not abuse their credit card, it might be a good idea to keep one or two active cards, but do not forget to pay the balance each month. I understand that an active credit card with a zero balance has little, if any, affect your credit score. It's the same with debit cards. The software credit score only looks at how much you need at some point over the limit credit card. The software is also very strong on the payment on time. Therefore, it is wise to view a credit score to have a small amount on a credit card with a high limit. Another important factor is the credit history, how long you've had the card.
My advice is to keep both cards. A map should be the one you've had the longest. The other, the one with the credit limit is higher. Cut the rest and send letters to formally cancel. Play a game
buy every month on each card and pay the entire bill when it is received. Then, periodically ask the credit card companies to increase the limit on each of your two remaining cards. It may take some time, but if you persist, you can increase this limit, which in turn help your credit score.
This couple has asked an interesting question about how they could improve their credit score after paying all that debt. What should they do to cut their credit cards, keep them open or officially cancel them?
My answer depends on whether you are likely to misuse of credit cards from this point.
abuse of credit card is like a drug, if the card is available, it could be misused. Even if a credit card is reduced by half or sitting in the freezer, the account is still active and the number can be used / abused for online shopping as an airline ticket around the world or on a widescreen TV. My recommendation to potential aggressors is officially cancel all the cards after they are reimbursed by sending a letter to each company. How does this affect their credit score is less important than the possible misuse.
For those who will not abuse their credit card, it might be a good idea to keep one or two active cards, but do not forget to pay the balance each month. I understand that an active credit card with a zero balance has little, if any, affect your credit score. It's the same with debit cards. The software credit score only looks at how much you need at some point over the limit credit card. The software is also very strong on the payment on time. Therefore, it is wise to view a credit score to have a small amount on a credit card with a high limit. Another important factor is the credit history, how long you've had the card.
My advice is to keep both cards. A map should be the one you've had the longest. The other, the one with the credit limit is higher. Cut the rest and send letters to formally cancel. Play a game
buy every month on each card and pay the entire bill when it is received. Then, periodically ask the credit card companies to increase the limit on each of your two remaining cards. It may take some time, but if you persist, you can increase this limit, which in turn help your credit score.
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