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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 9/29/2005 9:18:18 AM EDT
[Last Edit: 9/29/2005 9:26:50 AM EDT by BeetleBailey]

We have excellent credit, no high debt, but a lot of accounts due to various reasons (tires, school loans, etc.). Seeing a handful of closed accounts on my report just makes me cringe. Should I not worry about it?

Link Posted: 9/29/2005 9:24:44 AM EDT
Don't loose any sleep over it.

When I got married to my second wife, and finally got all of the debt paid off,
I literally copped up more than a dozen credit cards.

You know how it goes.... Have a big balance on one, then get an application for
a new card with 0% interest for 6 months. Then another, and another.

We bought a house a few months ago.

I had outstanding credit, primarily because I was never late for a payment on anything.

PLUS, I was told that having a HUGE available credit limit didn't mean anything.

I was told that lenders ideally want to see that you USE about 20-30% of your available
credit, and can maintain that level without missing payments.

People like my parents, who needed a loan, but never had a credit card... always have problems.


Link Posted: 9/29/2005 9:27:30 AM EDT

So a handful of accounts is essentially ok as long as there is no outstanding debt?
Link Posted: 9/29/2005 9:27:48 AM EDT
You have to close those mall store cards, gas cards, membership cards, etc... I've even seen companies issue a new card to replace the old one with a new account number, but the old number was still open.
Link Posted: 9/29/2005 9:34:32 AM EDT

Originally Posted By BeetleBailey:
So a handful of accounts is essentially ok as long as there is no outstanding debt?

Lenders WANT to see some debt.

Having debt and being able to manage it is very important.

Having no debt doesn't prove anything. They want to see how you handle owing money.

Link Posted: 9/29/2005 9:41:21 AM EDT

Originally Posted By BeetleBailey:
So a handful of accounts is essentially ok as long as there is no outstanding debt?

yup. I have at least 5 closed accounts and a very high credit score.
Link Posted: 9/29/2005 9:41:55 AM EDT
You should have 2-4 open credit card accounts. Close all of your store accoutns and gas accounts.
Link Posted: 9/29/2005 9:43:57 AM EDT
87 closed accounts here!
Link Posted: 9/29/2005 9:44:51 AM EDT
Link Posted: 9/29/2005 9:49:44 AM EDT
I have a good credit score and a few closed accounts on my credit history. There is one thing that bothers me on one of those closed accounts. When I got my most recent report, at the top of the page there was a statement saying that there was information that could reflect negatively on my credit score, and it was flagged with an asterisk or something. One one of the accounts that is closed, it showed where I had been late with a payment by four months. I can tell you with 100% certainty I have never been more than a day or two late with any payment. The account has been closed for years so I have no idea what it's about.
Link Posted: 9/29/2005 10:01:29 AM EDT
From someone who does finance for a living - heed these words.

Once you open an account the damage is done. Don't close it - it can hurt your score.
Keep revolving debt on each card below 30%.
Make payments above and beyond minimal if you want to see the balance move.
Be responsible - don't keep applying for cards with gifts/intro rates.
Link Posted: 9/29/2005 10:04:32 AM EDT
I always over pay. I could go a whole year now and not make a payment because i have doubled my payments for the last year
Link Posted: 9/29/2005 10:49:24 AM EDT

Originally Posted By tc6969:

Originally Posted By The_Reaper:
Don't loose any sleep over it.

Loost sleep is a terible thing.

Yes, loost sleep is terrible.

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