Welcome to the UtahHomesToGo.com Blog

2013-06-19 11:13:48
Credit Cards Not To Close - By John Fritsche

Credit Cards Not To Close


1. Don’t close a card that you're currently late on.
Some folks think that by closing a credit card that is currently late, it will somehow magically make the debt disappear. Ya, not going to happen. In fact if you close a delinquent card it will look like you're trying to hide that debt and will actually hurt your scores more.

2. Don't close any credit card that still ...has a balance.
When you close a credit card with a balance, your available credit limit will be now reported as $0. So now it looks like your card is maxed out or worse yet, charged over its limit. Once again this will damage your scores cause it looks like you can't be trusted to keep your cards under control. The way to high credit scores is by keeping your balance under 50% of your card's limit. Got a $1,000 limit on your card? Keep that balance under $500.

3. Don't close your only credit card with a $0 balance.
One trick to boost your score. Having two cards with $1,000 limits but only $500 balances is better than having one card with that $1,000 limit and a $1,000 balance. It's better to spread the debt.

4. Don't close your only credit card.
First of all, you never know when you might need it. Like an emergency car repair. But second, having a mix of credit types on your report is a good thing. Car loans, credit cards, etc. shows you've been trusted with different kinds of credit and that's a good thing

5. Don't close your oldest credit card account.
Part of your credit score is how long you've had credit. Even if there is a $0 balance on that old card, keep it open to give you longer credit history.

6. Don't close the credit card with the best terms.
This is kind of a no brainer but still... When looking at closing cards, be sure and check the terms and interest rates before you do. I kept one card over another even though the rate was about the same because their flyers points are so much easier to use.

When to Close a Credit Card
It’s ok to close a newer credit card that you no longer use as long as the card doesn't have a balance and you have other credit cards. Or, you might close a credit card that suddenly raises your interest rate or introduces an annual fee.

 

Written by John Fritsche

Please feel free to contact John Fritsche with any home loan related questions or needs. His years of home loan experience are upresidented and will make your next home purhcase or refinance go as smooth as possible for as little as possible. John can be reached at: 801-726-3596 or by email at: MortgageWithJohn@Comcast.net and you can also visit his website at: www.JohnLoansUtah.com

 
Blog Archive
2014-08-11 18:44:39
New Credit Report System Is Coming

2014-07-23 09:36:16
CitiBank To Pay 2.5 Billion To Mortgage Customers

2014-07-10 14:20:01
2014-2015 Utah Housing Boom On Its Way?

2014-05-09 15:09:05
Retirements Biggest Threat

2014-04-17 08:19:16
Less Homeowners Underwater Hurts Buyers Market

2014-04-09 11:00:58
Foreclosure inventory has dropped 35%

2013-12-09 17:05:29
Feds To Stop Bond Buying Program?

2013-11-28 09:41:42
3 WAYS TO BOOST YOUR CREDIT SCORE FAST | UTAH

2013-11-24 09:35:54
Utah FHA Loan | .5% Down Utah Mortgage Loan

2013-11-14 15:18:45
Home Prices Stalling | Utah Homes

2013-10-04 09:31:43
OWN IN OGDEN PROGRAM GUIDELINES & MAP

2013-10-02 14:45:55
Govt. shut down vs. home loans

2013-10-02 11:56:33
5 projects that hurt the resale of your home

2013-08-26 10:04:31
*Scam Alert* Beware New Credit Card Scam

2013-08-08 10:17:34
Utah Housing New Loan Program - No MI

2013-08-06 18:26:21
Investors Leaving Housing Markets

2013-07-14 11:46:05
Your spending could kill the deal..

2013-06-27 20:16:08
Why Interest Rates Have Gone Up So Fast

2013-06-21 10:56:21
Utah Housing Interest Rates - UtahHomesToGo.com

2013-06-19 11:13:48
Credit Cards Not To Close - By John Fritsche

2012-02-29 11:21:05
HUD Press Release | Utah Real Estate

2012-02-12 08:42:08
Utah Home Prices Increase In 2011 | Utah Real Esta

2012-01-01 23:36:22
Utah Real Estate - 2012 Utah Housing Market | Utah

2011-09-25 08:40:12
Utah Lake - Utah Real Estate | UtahHomesToGo.com

2011-09-02 18:05:29
Fun In The Sun At Lagoon!

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.