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I have several store credit cards with balances. I am trying to raise my FICO score to buy a home . My intention is to pay off as many as I can as soon as I can but should I also close the accounts once paid? I am afraid that closing accounts lowers my score. Is this true?
Hi Breardon,
I have read on here if you are going to close a credit card account. It is best to close the newer ones. Because the older ones show your credit history as to where the newer ones don't. And also be careful as to the amount of credit you have available to you as well. Because your debt to income ratio goes by available credit not what you owe and that can lower your credit score.
Debra is correct. Never close an older card that has a good payment history on it. Creditors and banks like to see accounts that have a good history. It shows that even over a long period of time you are able to keep your accounts current and paid. If you are planning on closing any newer credit cards be sure that you ask them to list the account as closed,requested by card holder, or something along those lines. Even when closing newer cards the information will remain on your report for, I believe, 10 years. It will shoiw they have been paid and were in good standing.
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