5 Major Myths About Your Credit Score

Here’s another falsehood when it comes to credit.

Myth 3 – Closing My Card Account Will Erase Its History

When you close an account, it doesn’t fall off your credit report. “Plenty of your closed accounts show up and tend to show up for many years to come,” Dornhelm says.

That’s actually good news in a way. While closing an account diminishes your available credit (which could increase that debt-to-credit ratio we discussed prior), it doesn’t erase the history that you have with that card from, say, 2005 or the first day of college. The length of your credit history remains on your report for several years even after the account is closed. And that’s good, since credit history length comprises about 10% of your score. The longer your history, the more it’s going to do for your score.

Leave a Reply

Your email address will not be published. Required fields are marked *