At the time, I didnt know how credit scores are determined.
I thought that since I had an open line of credit that wasnt being used, it would lower my credit score (too much available credit can be a bad thing). That was partially true, but I didnt realize that the age of your credit history also affected your credit score. That line of credit was open for 8 years, had a $1,000 limit, and I was never late or missed a payment. Besides that card, my newest lines of credit were another credit card and a car note, both of which were about a year old. Canceling that credit card reduced my average age of credit quite a bit, and there was no substantial benefit by reducing my line of credit by credit score free Wisconsin $1,000. This chart breaks down the components of your FICO score. As you can see by the above chart, making any drastic changes to any of the categories can affect your credit score. This would include missing payments, raising your credit utilization, canceling cards and reducing the length of your credit history, taking out new credit cards, and taking out different forms of credit (mortgages, store brand credit cards, student loans, etc.). Recently, my wife received a new Discover Card to replace an expired card, but she forgot she even had this particular card in her name! check credit score for free It turns out credit score free Wisconsin she used the card when she lived with her parents and even though she hadnt used the card for several years, it was still active. We looked into it a little bit, and it turned out she had a $15,000 credit score free Wisconsin limit on it. Add that credit limit credit score free Wisconsin to another Discover Card, a credit card through our bank, and a mortgage in her name (she bought the house credit score free Wisconsin before we were married and I was never added to the mortgage), and we credit score free Wisconsin found out she has a lot of available credit to her name! Time to reduce the amount of credit to improve her score! We called customer service to cancel the card and while we were going through the process, I remembered that we shouldnt cancel the card because your length of credit history affects your score. free credit report online instantly This card was about 12 years old, which is a very good age to keep on your credit.
Well, it turns out credit card companies credit score free Wisconsin dont like to lose customers, so they transferred us to a CSR intent on credit score free Wisconsin keeping us as customers. In the end, we kept the card open and had it switched to the Discover® More® Card which offers great rewards benefits. The Discover Card rep offered to lower the credit limit to $1,000, which is the minimum line of credit you credit score free Wisconsin can have. This helped lower her available credit score free Wisconsin credit limit and should help improve her credit score. The last time I checked was a couple years ago when I bought my car. My wife hasnt checked hers in about the same amount of time, when she got a mortgage. One of the reasons Ive written about credit scores so often lately is because I knew I needed to check ours, and I was interested in learning about it. Related Articles:
- Why College Students Should Get a Credit Card NOW What Do You Do When One Credit Bureau Reports Your Credit History Incorrectly? Pros and Cons of Secured Credit Cards Difference Between Credit Score and Credit Report How to Improve Your Credit Score
He is a writer, small business owner, entrepreneur, and professional in credit score free Wisconsin the corporate world. He served over 6 years in the USAF and also writes about military money topics at The Military Wallet.
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29 comments read them below or add one Ive got a good credit score, and ive only got two open credit cards.
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