Friday’s Credit Tip #11: Beware of Unused Credit
It is easy today to apply for a store credit card that you forget all about in three years but that account will remain on your credit report and affect your credit score as long as it is open.
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.
Only get credit when you absolutely need it.
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. I do not recommend you closed unused credit cards! 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.
Check back next Friday for another credit tip!
Are you ready to take control of your financial future?
Hire me as your financial advisor, and get everything you need to start making real change. Unlimited text and e-mail support. Bi-weekly live streaming coaching sessions. Budget development, investment advising, credit repair, and much more.