About to purchase- Finance questions
Hey all, I have a downpayment on a new travel trailer and just sold my pop up last night. Thursday I will go to sign papers. They were touting 4.99% finance rates until I got the deal. Then it ju...
Forum Discussion
coolbreeze01 wrote:RoyBell wrote:
(I did close some cards yesterday, maybe it helped?). So close.
I don't know anything about credit, but I've heard closing credit cards can have a negative effect on scores.
Anybody know?
Absolutely YES!
Approximately 30% of your credit score is based on your debt-to-credit ratio.
Example;
*You have $50,000 in available credit and owe $10,000. That gives you a debt ratio of 20%
*Now you close a $20,000 credit account, and still owe $10,000. Your debt ratio jumps to 33%.
*BAM! Your credit score just took a huge hit!
