John Asks… I heard that one way to improve my credit score is to close old accounts. True?


Closing accounts like credit cards that you no longer use can acutally LOWER your credit score. Yes, I said lower your score. I know it sounds crazy but by closing an account with a zero balance, you are reducing the amount of credit available to you . Therefore your ratio of credit owed to credit available goes up , which can have a negative effect on your all  important credit score. This ratio makes up 30% of your score so granted it may not have a huge impact, but if you are getting ready to make a major purchase like a house or car – every point counts!

Consult your mortgage professional several months before you want to qualify in case there are any credit challenges that need to be taken care of  – before you find your dream home!

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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