Q. Will closing accounts increase my score?
A. No. Closing accounts will not increase your credit score. Limiting your available credit will actually lower many consumers’ credit scores.
Q. Will paying collection accounts repair my credit?
A. While paying off collection accounts may help you improve your score, it doesn’t repair your credit. Collection accounts still report on your credit report for 7 years which will continue to impact your score negatively.
Q. Will opening multiple credit cards help increase my credit score?
A. No. While it’s good to establish your credit using credit cards. Applying for too many credit cards will actually impact your score negatively. Each inquiry lowers your credit score 3-5 points. That inquiry remains on your report for 2 years.
Q. How can I maintain good credit?
A. A few tips on maintaining good credit: Keeping low balances make sure that credit card balances are below 35% of the credit limit. Stable home & employment may also help long term budget because instabilities will cause a concern with potential creditors.