Buyer beware
I went to Mike Thompson's RV in Colton, Ca. to buy a new Travel Trailer. I had spoken with a person that I was told was a manager two weeks ago, and explained my complete sitution, money, trade-in, d...
Forum Discussion
Crowe wrote:
Actually, canceling cards and lowering credit limits will lower your credit score. One of the big components of the score is your debt to available credit ratio. Canceled cards and declining limits is a big red flag and a big score buster. Also important is how long your accounts have been active. Start canceling ones you have had open a long time and your score goes down.
Have to disagree. Hubby and I have near-perfect credit scores (824 & 832 out of 840, respectively, and have for years. When we refinanced our house a few years ago, our mortgage lender recommended we cut back our credit limits to decrease our liability. It's dependent upon your credit to debt ratio.
Not to be offensive but having a high credit score and understanding how credit scores are established are not necessarily the same. On a long term outlook, closing existing accounts that have zero balances can produce incremental increases in score. Closing accounts when it is common to carry balances on some accounts will produce the opposite results.
Raising your credit score by a 100 points is not going to happen on a sixty or ninety day basis. There are a number of items considered in a FICO score, many of which are undisclosed. There are numerous sources on-line where credit scores and how they are calculated are discussed. Makes for very interesting reading.
