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CREDIT TIP- KEEP YOUR OLD CARDS ACTIVE
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15% of your credit score is based on the length of your credit history, in addition to your debt to credit ratio. If you have older cards, or cards that you paid down to $0
NEVER CLOSE THEM! Even if they have a higher interest rate than your newer cards, it is best to put them in a drawer and use them every six months to buy gas and keep them active. Closing a card will greatly decrease your debt to credit ratio, as well as shorten your overall length of credit history. If you have had a rough time recently, declared BK, keep your credit alive. If necessary join a credit union, create a savings account and after a bit have a frank talk with their accounts manager. Explain your past situation, and that you want to re-establish your credit. Inquire about using your $1,500 savings account to secure a visa or Master Card. This is a good way to get that "do over". Use it for gas once a month. Make the payment on time...
One of the biggest mistake folks make after a BK is not re-establishing credit. I don't mean go out and leverage. I'm talking about making good credit to offset bad credit. If there is no good credit to rate... in 5 years you'll still have unacceptable credit scores... Just because there was no "good" payment history to rate.
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Shaken...with a Twist 216.633.2092 - Euclid, OH
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Uxbridge, ON
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Ingred - I find it amazing how easy it is for some one to build and maintain a good credit rating after a going belly up.
Mar 25, 2010 04:19 PM
iTexas Realty Co. - San Antonio, TX
Hi Ingrid-
Great advice for those looking to improve or preserve their credit score. There really is a lot that can be done - even if you are not a fan of debt in general.
Sara in San Antonio
Mar 25, 2010 04:24 PM
Trident Investments Group - Las Vegas, NV
I tell this to everyone. Never close out good accounts with good credit histories. Doing this will hurt your credit. Keep all of these old accounts active. Close unused current ones expecially store cards. Those hurt you just as bad as the credit destoryer Captial One
Mar 25, 2010 05:58 PM
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Ingrid Pierson
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Brings fresh information about Placer County lifestyle information... specializing in vineyards, vineyard homes and vineyard lifestyles. Opportunities for Home wine making, and local color and activities centered around local wineries, and venues of Auburn, Loomis and Newcastle.
Additionally, with my background in lending I bring information about short sales, changes on laws and lending that impact you as the Seller and the bank approval process.
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