Archive for June, 2008
The Older The Credit Account, The Better For Your Credit Score
June 2nd, 2008. Published under Credit Myths. No Comments.
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Did you know that the older the credit account is, the better it is for your credit score? It’s true. Fifteen percent of your credit score is determined by the length of your credit history.
Knowing this fact is contrary to what many people have heard; Closing your old accounts improves your credit score. This is completely untrue, and you should stay away from it.
Imagine that you had a credit card since 2001 and you’ve never been late on it. Then you decide that you rather close it out since you don’t use it very much any more. The minute you close that account, you’ve just lost 7 years of good credit history. I’ve seen many people’s credit score drop 20-30 points simply by closing out one old account.
Make sure you keep your oldest accounts in good standings (just like your newer ones too!) because they will help keep your score up. Fifteen percent can make a dramatic difference in your credit score over time.
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