Closing a credit card that is no longer in use can be good decision to money management
1. Review my credit history will hinder my credit score.
Enquiries have an impact on credit quality but credit only those for which you have applied in the last two years. Surveys of this type are known as “hard inquiries” leaving a huge impact on the credit history. Once you reach free credit report, you can purchase several types of applications. You will also see pre-approved surveys, which are mainly companies with contact information for marketing purposes and you broadcasting offers credit cards, which will also be listed on your credit report. But he did not have a negative impact on your score.
2. Closing credit card used is a smart thing.
Believe it or not, but the cancellation of the credit card lowers rating. Closing a credit card that is no longer in use can be good decision to money management. Utilization rate has an impact on the credit score and the amount of available credit limits. For example, if there are two credit cards, each with $ 5,000 limit. 20 percent or $ 1,000 balance on each is desirable, but the scores are affected when you close a card and transfer them to another. In doing so, you load the card with another $ 2000 to $ 5000 and your use can reach up to 40 percent which is bad for the credit score. Find more details at free 3 credit scores.
3. Load balance on the credit card is better than to pay each month.
Your credit report does not reflect what you pay each month. Lenders can only come to know the date and the balance on the card when the information was submitted to the agency credit reporting. Regular physical activity on the card, including making purchases and paying on time each month has a good effect on the credit history.