It’s a new year and many people have made a resolution to <b>fix their credit score by taking better care of their finances.</b>

One idea that they have in mind is to pay off some of their credit cards and then close the accounts.  However, this may not be the right thing to do.

There are a lot of good reasons for wanting to close a card but, in reality, closing it can have the opposite effect of what you wanted.  

<b>Canceling or closing a credit card may not be the best move to fix your credit score.</b>

Paying down the balance on your accounts is good for your credit score as you are reducing the amount of outstanding debt.  However, you don’t want to take the balance to zero and leave it there.  You want there to be activity on the account.

Credit is all about showing creditors and lenders that you have the ability to manage debt.  If you have no debt, you don’t have an opportunity to show that you can manage it and creditors will view you as a higher risk.

In addition, closing a credit card account will affect the major factors used in calculating your credit score.

<b>Reduces the number and types of open accounts</b> shown on your credit report.   Since 10% of your credit score is based on the different types of credit that you have, it’s important to have at least one open and active credit card

<b>Shortens your credit history.</b>  The length of time that you have had creditors reporting to the bureaus counts for 15% of your score.  Lenders tend to view borrowers with short credit histories as being riskier than someone with a longer history.     

<b>Negatively affects your debt / credit ratio.</b>   This ratio lets lenders know at a glance how well you are handling your finances.  It shows the amount of credit you are using as a percentage of the amount that is available to you. 

When you close an account, the remaining balances on your other accounts will become a higher percentage of your overall credit limit, increasing your ratio and reducing your score.  Since this factor counts for 30% of your FICO score, <b>closing a credit card can have a major impact on your score.</b>

A general rule of thumb is to keep old accounts open and maintain a low balance on them.  This way, not only will you have some reserve credit to use in the case of an emergency, but you also are showing your card company that you can manage your debt.

Douglas Zimmer – About the Author:

Keeping your old accounts open and active is just one of many great credit repair tips that can be used to fix your FICO credit score.

With credit being more difficult to get these days, it’s becoming very important that you have a good credit score.  Taking care of your credit will increase your chances of being approved for that new loan.

Next, discover more ways to fix your credit score, along with a free course that will help guide you through the steps to having better credit, at http://fixcreditscorefast.org   

Source: http://www.articlesbase.com/credit-articles/fix-credit-score-think-closing-a-credit-card-will-help-fix-your-credit-score-it-doesnt-4173722.html

Why there is a strong need for good credit and ways to gradually increase your FICO score.

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We’ve all received offers, often quite persistent, to sign up for a new credit card. Credit cards themselves are great, because you can get the things you need even without cash readily available.

When appling for a bank loan or credit card the banks along with other lending institutions will check your credit ranking to ascertain how risky you are to lend to. The credit score is a very important number that can determine if you can be eligible for a loan, the interest you will be charged on that bank loan and any other borrowing constraints.

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You have your Equifax, Experian, and TransUnion credit reports in front of you and are trying to make sense of all the different information listed in them. You notice a 3-digit number …the mathematical summary of all your financial information…your credit score. If you are like the majority of Americans, you look at your number and ask yourself, “What is a good credit score?” or “Where does my score need to be to put me into the good credit score range?”

It seems that wherever you go today, people are talking about the importance of having good credit and the different ways to raise a low credit score. People are interested in learning about their credit rating for a variety of reasons. If you are looking to buy a new home or car, apply for a credit card, or even apply for a job, you want your credit score to be as high as possible. You need to understand how your credit score is calculated, and what you can do to improve it.

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Today most of the people find it quite important to check their credit score. This is because of number of reasons. The most important reason is to apply for a house or car loan. At that time, it is better to have a credit score check to avoid the embarrassing situation of having the application for loan turned down. You can have your credit check with any of the credit report agency. These types of agencies measure your credit history that is usually in a weighted number. The score provided will help you know how well you are handling your credit.

There are three recognized credit agencies that can help you get your credit score report. They are Equifax, Experian and TransUnion. They collect details of credit history from the creditors and calculate the score using credit scoring software. However, each agency employs its own method of calculation even though the statistical scoring models are the same. Hence the score provided by different credit agencies are comparable.

How Can You Check Your Credit Score?

Since you can check your credit score only with the credit bureau, it may require you to spend some money. There are ways to check it free too. They are:

Other than the borrower the prospective lender contacts the credit agencies for the credit report. This will help him or her to decide wisely. Meanwhile, the borrower can also find out from the credit score check whether he is eligible for a loan or not or if he has had already one, a better credit score will help him have a reduced interest rate. Thus, you can check your credit score for a better credit rating.

Chris – About the Author:

Read more details about credit score check and average credit score

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Source: http://www.articlesbase.com/credit-articles/credit-score-check-an-acknowledgment-to-your-credit-card-4626680.html

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Answer by ChoDuffield
Do you have a bank account? If you do then walk into that bank and talk to them about getting a credit card. If they attempt to hand you an application and tell you to turn it in through the mail or such explain your situation and that you’d like to do this in person. I can understand not getting an answer to a rejection if you applied for credit cards online or through the mail, but if you applied for a loan at a legitimate institution then they will tell you why you were denied. I agree that people here forget about the question and go into lecture mode a lot. You’re upset that you aren’t getting your question answered, but it really seems a big piece of the picture is being left out.

Answer by Judy
Keep the account open if you don’t want to mess up your rating. Remove any monthly fees you may be being charged. Put the credit card away somewhere safe and do not use it. /

Answer by Mary F
Credit card declinations are not reflected in your credit report but a lot of inquiries can hurt your score. If I were you I would consider trying to get a credit card through your bank or try a local credit union. If you need to get a secured credit card where the amount of deposit you put in equals the credit line. Charge some small purchases but pay off the entire balance every month. You also want to show a payment as agreed history. My husband and I have superior credit (over 850 scores) He has limits of $ 25,000 or more on some of his cards. Believe me when I married him I was coming into the marraige with a Chapter 7 bankruptcy and by following this advice I am in Credit Heaven. Good Luck!!

It really is important to 1st fully grasp what an unsecured credit card is and how it can affect your financial well-being. An unsecured bad credit card is commonly extended to those that have had a couple of minor and/or major blemishes on their credit report. This can range from something as serious as a foreclosure to previous defaulting on credit cards. Also remember that credit card businesses that issue unsecured poor credit cards will locate you as a financial risk. Thus, they will generally have high interest rates, high application fees, and high annual rates. In addition, the credit limits for this kind of card are normally quite low, most usually under $500.

Despite the added costs, an unsecured bad credit card can help you get back on track to financial wellness. Begin by making each and every payment on your unsecured bad credit card totally on time. By doing so, you are showing good financial responsibility which will be reflected in your credit score and credit report. Also, never use far more than 30% of your credit limit for an unsecured poor credit card. Any additional than this might be seen as financial dependence on credit, which is seen as a negative aspect by credit reporting agencies.

By taking extra care and attention to your credit after a recent property foreclosure, you might be opening yourself up to possibly obtaining an additional loan within the future. Just maintain you chin up, your payments totally on time and soon sufficient issues will look much better financially!

Answer by Jenyfer C
keep a low balance that you make payments on, every month on time. YOur credit score looks at timely payments, but also debt to credit ratio. Try to stay well below the limit. Most credit card companies review accounts once a year and may increase your limit thwn.

Answer by loslunas87031
ask yourself this question… would you randomly give money to someone you do not know just based on what they write on a piece of paper ? a little advice here.. never buy anything you can not afford to pay for in cash. Credit may be a good thing but can mushroom into something you will be sorry for quickly.

Answer by SPIFIMAN1
You can’t, the reports are free you have to pay for your scores.

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