This seems like a contradiction, but it really is not. Many people think that to improve their credit score, they just have to pay off some debts and close their accounts. This is not exactly accurate. There are several reasons to think carefully before closing your accounts.

First, if you close an account you need (for example, if you close all your credit card accounts) then you will have to reapply for credit, and all those inquiries from lenders will cause your credit score to actually drop.

Secondly, most credit bureaus give high favorable points to those who have a good long-term credit history. That means that closing the credit card account you have had since college may actually hurt you in the long run. If you have credit accounts that you don’t use or if you have too many credit lines, then by all means pay off some and close them. Doing so may help your credit score – but only if you don’t close long-term accounts you need. In general, close the most recent accounts first and only when you are sure you will not need that credit in the near future. Closing your accounts is a bad idea if:

1) You will be applying for a loan soon. The closing of your accounts will make your credit score drop in the short term and will not allow you to qualify for good loan rates.

2) Closing your accounts will make your overall debt balance too high. If you owe $10 000 now and closing some accounts would leave you with only $1000 of possible credit, you are close to maxing out your credit – which gives you a bad credit rating.

In the short term, closing accounts will lower your credit score, but in the long run it can be beneficial.

Learn how to increase your credit score while you are renting to own a house. You can rent to own any house in Ontario, Canada. You only need a low down payment, a stable income & less than perfect credit is okay.

How to Rent to Own your next home?

The first step is to request an INITIAL CONSULTATION to find out if you qualify. Then, the next step is to complete the online application after the consultation. This will start your qualifying process. Before you know it, you will be renting to own your next home.

Rent to Own your next home. Call the 24hr recorded message system or register on our website & watch the video to find out more about the program & how it can help you. In 60-90 seconds we will tell you everything you need to know.

PLUS – FREE – How to fix your credit e-book included! This program helps!

To learn more about selling your house, click to call us now:

Every time that someone looks at your credit report, the inquiry is noted. If you have lots of inquiries on your report, it may appear that you are shopping for several loans at once – or that you have been rejected by lenders. Both make you appear a poor credit risk and may affect your credit score. This means that you should be careful about who looks at your credit report. If you are shopping for a loan, shop around within a short period of time, since inquiries made within a few days of each other will generally be lumped together and counted as one inquiry.

You can also cut down on the number of inquiries on your account by approaching lenders you have already researched and may be interest in doing business with – by researching first and approaching second you will likely have only a few lenders accessing your credit report at the same time, which can help save your credit score.

A hard enquiry is like a new company for the first time looking at your credit profile.  A soft enquiry is when an existing company that you already have a relationship with looks at your credit profile.  Hard enquires lower your credit score however, soft enquiries do not lower your credit score.  You want to reduce the amount of new companies looking at your credit profile. 

Learn more about how to increase your credit score while you are rent to own a house. You can rent to own any house in Ontario, Canada. You only need a low down payment, a stable income & less than perfect credit is okay.

How to Rent to Own your next home?

The first step is to request an initial consultation to find out if you qualify. Then, the next step is to complete the online application after the consultation. This will start your qualifying process. Before you know it, you will be renting to own your next home.

Rent to Own your next home. Call the 24hr recorded message system or register on our website & watch the video to find out more about the program & how it can help you. In 60-90 seconds we will tell you everything you need to know.

PLUS – FREE – How to fix your credit e-book included! This program helps!

To learn more about selling your house, click to call us now:

It is easy today to apply for a store credit card that you forget all about in three years – but that account will remain on your credit report and affect your credit score as long as it is open.  Having credit lines and credit cards you don’t need makes you seem like a worse credit risk because you run the risk of “overextending” your credit.

Also, having lots of accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it – resulting in a lowered credit score.  Keep only your used accounts and make sure that all other accounts are closed.  Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.

However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for a while.  In fact, closing unused credit accounts may actually cause your credit score to drop in the short term, as you will have higher credit balances spread out over a smaller overall credit account base.

For example, if your unused accounts amounted to $2000 and you owe $1000 on accounts that you have now (let’s say on two credit cards that total $2000) you have gone from using one fourth of your credit ($1000 owed on a possible $4000 you could have borrowed) to using one half of your credit (you owe $1000 from a possible $2000).  This will actually cause your credit risk rating to drop.  In the long term, though, not having extra temptation to charge and not having credit you don’t need can work for you.

Learn more about how to increase your credit score while you are rent to own a house.  You can rent to own any house in Ontario, Canada.  You only need a low down payment, a stable income & have less than perfect credit.

How to Rent to Own your next home?

The first step is to request an initial consultation to find out if you qualify. Then, the next step is to complete the online application after the consultation. This will start your qualifying process. Before you know it, you will be renting to own your next home.

Rent to Own your next home. Call the 24hr recorded message system or register on our website & watch the video to find out more about the program & how it can help you. In 60-90 seconds we will tell you everything you need to know.

PLUS – FREE – How to fix your credit e-book included! This program helps!

To learn more about selling your house, click to call us now: