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[tag]Closing Credit Cards[/tag].

Many people who have lines of credit with different lenders such as [tag]Visa[/tag], [tag]Mastercard[/tag], and [tag]AMEX[/tag] feel that they can boost their [tag]credit scores[/tag] by simply destroying their credit accounts. This is far from the truth! Actually closing credit lines will have a negative impact on your credit! Why? Your credit score is partly configured by your debt to credit ratio. Closing a [tag]line of credit[/tag] will decrease the gap between your debt and available credit and actually make you look worse! Not to mention this will also hurt you if you close one of your oldest lines of credit! If you have a credit card from 1998, that’ll give you 10 years of credit. Eliminating this card and keeping one that you got 3 years ago will make your history look very short.

[tag]Credit Card Consolidation[/tag].

Having only one [tag]creditor[/tag] to pay on a monthly basis may sound very pleasing to the majority. The truth of the matter is that this will actually make you look even worse! A creditor loses the opportunity to see the various types of credit lines that you’ve utilized when you roll everything into one! Having a variety such as “[tag]installment loans[/tag]” and “[tag]revolving credit[/tag]” will get you more credit granted. The types of credit you use usually account for 10% of your overall score.

The 30% Rule.

Using more than 30% of your [tag]available credit[/tag] at any given time will grant you the title of “[tag]high risk[/tag]” in any creditors eyes. They assume that the more credit you use, the higher possibility that you’ll [tag]default[/tag]. The math is simple. If you have a credit line of $1000, don’t use more than $300 and make sure you pay it off in full at the end of the month. Wasn’t that easy?

Credit is very important for your success business and your personal life if you ever want to achieve as an [tag]entrepreneur[/tag].