Do NOT Close Your Credit Cards!
Posted on January 17, 2020
How many times have you heard someone say they can’t buy a home because of their CREDIT?
Credit problems are one of the top reasons people list as the reason they aren’t able to purchase homes, but WITHOUT UNDERSTANDING what makes up your credit score it can be difficult to make EDUCATED choices about fixing your credit.
Your credit score consists of:
➡️ Your Payment History
➡️ Amounts Owed
➡️ Length of Credit History
➡️New Credit
➡️Your Credit Mix
Often times, when people pay down their credit card debt they will decide to close the credit account altogether to avoid adding on more debt. DO NOT DO THIS!
By understanding what factors your credit score is based off, we can see that your LENGTH OF CREDIT HISTORY accounts for 15% of your score! Credit bureaus want to see that you are able to be responsible with, and pay back, your debts over time, sot he length of time the account has been open can have a heavy impact on your score.
Even if you decide to never use a credit card again, actually closing the account WORKS AGAINST YOU and can lower your credit score significantly.
If you’d like to talk about the impact your credit has on purchasing a home
Often times, when people pay down their credit card debt they will decide to close the credit account altogether to avoid adding on more debt. DO NOT DO THIS!
By understanding what factors your credit score is based off, we can see that your LENGTH OF CREDIT HISTORY accounts for 15% of your score! Credit bureaus want to see that you are able to be responsible with, and pay back, your debts over time, sot he length of time the account has been open can have a heavy impact on your score.
Even if you decide to never use a credit card again, actually closing the account WORKS AGAINST YOU and can lower your credit score significantly.
If you’d like to talk about the impact your credit has on purchasing a home COMMENT DOWN BELOW!
To learn more —> https://www.youtube.com/watch?v=LH9UkgnoyD8