If your trying to decide what to do with all that cash Washington is sending you in the next few weeks… you might also be looking at your credit report to see how to use that money more effectively.
In today’s environment we don’t usually suggest that folks close credit cards with no balance, but if that’s a decision you’ve made, here are some tips on how to close them the “right way:”
Contact Customer Service – The number should be on the back of your card. Tell the representative that you are closing the account. It’s their job to try and get you to keep it open, but if you’ve decided this is the right course, stay firm with them. Make a note of who you speak with, the date and time (I normally write this on my bill).
Follow up in writing – be sure to include the information about who you spoke with, and request that your credit be updated to show that the account was closed at your request. Ask for a reply in writing for your records. We suggest that you send this letter certified return receipt requested.
Recheck your credit report 60 days later. The changes should be reflected.
You don’t have to pay the cards off… in most cases,to build a higher credit score, it makes the most sense to keep the credit cards open, and simply pay the balances down to zero.
But which credit cards should you pay off first? Well, it does matter – as it turns out, the credit cards with the name of a STORE on them do not help you credit score as much as the ones with the name of a BANK on them.
If you are considering a home purchase, and you have credit scores that are ALMOST there, but not quite… call us! Steve and Eleanor Thorne, Mortgage Loan Officer in Cary , 919-649-5058.