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Some Questions to Ask About Your Financial Standing

Some Questions to Ask About Your Financial Standing

In order to go through credit repair correctly you will need to be able to answer some of the following questions. Whenever you get stuck with a question you always need to do whatever you can to get the desired answers. The main goal now is to turnaround your score and keep it at the top position possible. Those who find themselves in the worst positions are the ones who rush or are the ones who do not even want to find an answer. If you are serious about repairing your finances then the following are some of the answers that we think will really help you in your quest to get that score up.

What is the Proper Way to Close Credit Card Accounts?

Well, in order to close an account you are going to need to solid reasoning to do so. If you cannot find a solid financial reasoning then you should not close those accounts. One thing that bureaus look for is proper utilization of credit. If you are opening and closing accounts frequently then that will show that you do not know how to properly utilize your available credit. You can rarely improve your score just by closing an account. If you desperately want to close an account then make sure that you pay off all of the debt first, or you transfer the balance over to another card. It looks very bad to close an account that still has debt on it.

What is Credit Card Utilization?

Alright, we just spoke about utilization but most of you might not know what that is. A great way to improve your financial standing is to show those in charge that you can properly use your credit, but not flirt with disaster. This is credit card utilization. This can be done by keeping the balance on your cards low. A good way to do this is by looking at your allotted amount you can borrow, and then only going up to the 50% mark on it. This means you are not over using your credit, and you are saving some for if you ever really need it. If you can use it and then pay it quickly then you will get more credit and your score will improve. This is a situation where you win twice. The faster you reach 100% utilization the worst things will get.

Should You Transfer Your Debt Around Multiple Cards?

If you think you can trick the bureaus then do not be so sure. If you have a $2,000 debt that you transfer among 4 cards, it might only look like $500, but you still are $2,000 in debt. The bureaus knows this. The way it can help you though is that it lowers the ratio of credit to debt on each card. Therefore you might not be close to reaching the limit on your cards now. Plus, if some of those cards have low interest then you have executed a great balance transfer move. The times when you want to shift balances around are when you are close to debt on one card, or if you can get a new card that has very low interest. Just do not try to get too cute and trick the bureau, because that is difficult to do.

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