Before you cut up your credit cards in an attempt to curb spending, or purge old accounts, stop and consider the consequences. It seems rational to close off old credit card and retail accounts that you no longer use, but it may end up hurting your credit score.
When it comes to getting a mortgage, car financing, or any other credit, your current score will play a factor. Keeping your score high can save you thousands of dollars by qualifying you for better interest rates and lending products.
Continue reading “STOP! Don’t Cut Up Your Credit Cards if You Care About Your Credit” on my blog at BiggerPockets to learn the 5 factors that make up your credit score, and why closing your old accounts may hurt your score rather than helping it.
photo credit: kainr
