It is important that you determine only one credit card which is your main and only used credit card after you fall into debt on multiple cards. After doing that, you will probably want to close your other credit card accounts – wait! Closing them can actually damage your credit score because it modifies two factors of information used in the formula to determine your credit score – the amount of debt and the lengthy credit history.

If you close a credit card account, you will lower your credit score by doing so and if there is still a balance on the credit card; the drop in credit rating will be even more noticeable. If you were to close the credit card which you have a lot of history with and leave your no other open credit accounts, you could see most of your positive credit score erased because you are no longer displaying your healthy credit history.

Keep in mind that your history does not actually get erased and if you closed an old account, no matter how far back the information is dated, it will still show in your credit report. Another helpful thing you can do is ask for an increase in credit limit on the card right before closing.

adminGeneral12 Dec, 2008