Saturday, July 7, 2012

Cancelling Those Old Credit Cards. Hold On.


I read  today that a major component of your credit score is how much of your available credit you’ve used  --- called your credit utilization ratio.

Therefore, when you close an account you lower the combined credit limit on your cards.  It could look as if you’re closer to your credit limit. 

But there is more to the story, and so you might want to read up on it at SmartCredit.com  A consumer education website.

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