A Couple FICO Score Myths Debunked
They is a ton of advice out there on how to improve your FICO score. Really much is quality and you should follow things paying bills on time and some others. But there are many pieces of advice that are worth you shipping or even avoiding because they are not in the best interest of getting an excellent credit score.
Closing Accounts to bump up your score
The truth is this really has a negative effect. First, the idea of closing an account won’t make the account go away. Actually it will stay on your credit report for the next seven years. Also, the second largest part of the FICO score formula is your credit utilization. Or the percentage of debt you have to the available credit you can borrow. Closing an account raises your utilization and therefore could hurt your score.
There are reasons to close an account such as a true lack of control. If you know if the account is open you will spend like crazy then it might be a good idea to close the account.
Checking your own score could hurt it
Checking your own score is not going to hurt your FICO score. Actually checking your score is a sign of an informed consumer and one who wants improve and stay on top of their score. The only time have your score check will possibly count against you is when you are applying for new lines of credit. And actually even then it might not be seen as a negative event. It is when you start applying for several loans in a short period of time you will start to see the effect of too many credit inquiries.
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