14
|
r e d f c u.o r g
Do not email any account or personal identification information.
I got a promotion at my job and have finally paid off several credit
cards. Now, I want to close those accounts but don't want to make the
wrong money move. What should I do?
Most credit experts agree that you should wait before closing that credit
card account. e reason is credit utilization. Your FICO® Score, which most
lenders use, is calculated based on five factors, and your credit utilization ratio
is one of those. is ratio is the amount you owe as a percentage of your total
available credit.
Experts suggest using no more than 30% of your limit, and less is better.
Charging too much on your cards, or maxing them out, is usually associated
with being a higher credit risk and will eventually lower your credit score.
Instead, put the card away or cut it up so you don't use it. is will help keep
your credit utilization rate at better levels. en, to protect it, go to your online
banking account and use card controls to stop or lock the account.
YOU ASK – WE ANSWER!
Money Repair
To address other financial questions, call Redstone at 256-722-3796
or email aspire@redfcu.org.
ink Twice Before You Close a Credit Card
Need a 'get out of debt' plan or just need
someone to review your credit report
with you? Redstone's accredited financial
counselors can help..
