If you want to repair your bad credit or simply want to improve your already good credit score then you will want to take a look at your credit report and check out any credits that you have and are not using. Nowadays, it is easy to apply for a store credit card that you forget all about in a matter of months.
Store credit cards are enticing, but they’re only useful if you are a regular on that store, if you’re not, you’re bound to forget about it and it will affect your score as long as it is open.
Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit. Keenly checking your credit report is essential to be able to repair bad credit.
Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it - resulting in a lowered credit score and in an immediate need to repair bad credit.
Keep only your used accounts and make sure that all other accounts are closed. Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.
However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while. In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.
For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000).
This will actually cause your credit risk rating to drop. But don’t be alarmed, it’s all part of the process. After a while you’ll notice that your credit score will start shooting up and you won’t be googling “how to repair bad credit” anymore.
Store credit cards are enticing, but they’re only useful if you are a regular on that store, if you’re not, you’re bound to forget about it and it will affect your score as long as it is open.
Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit. Keenly checking your credit report is essential to be able to repair bad credit.
Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it - resulting in a lowered credit score and in an immediate need to repair bad credit.
Keep only your used accounts and make sure that all other accounts are closed. Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.
However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while. In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.
For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000).
This will actually cause your credit risk rating to drop. But don’t be alarmed, it’s all part of the process. After a while you’ll notice that your credit score will start shooting up and you won’t be googling “how to repair bad credit” anymore.
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