Have you been hit with the recent credit card rate changes, and are considering closing your account? If you are planning to buy a new Bennington area home, consider keeping it open and simply not using it. Closing accounts can affect your credit score. But if you must close one or more accounts, consider these tips:

• Keep your oldest card open – your credit score decreases if your credit history shortens, making you appear to be more of a loan risk to lenders.

• Having a variety of accounts (retail, mortgage, car loans, etc.) could help your score. Consider keeping a mix of credit accounts open.

• Don’t close all your accounts at once. This could put a red flag up to lenders that you are anticipating trouble with finances

• Close your newest cards (or those newer than your longest running account) or ones with the lowest credit limits.

Bennington VT Real Estate, Buying

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