Understanding the Impact of Closed Accounts on Your Credit

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Understanding the Impact of Closed Accounts on Your Credit

January 1, 2015 pthnw 0 Comments

Closed accounts don’t disappear from your credit history; they continue to influence your score, particularly the average age of accounts (see “Considering Closed Accounts in Your Average Age of Accounts”). A strategy relying heavily on purchasing tradelines without considering the impact of closed accounts can backfire (see “Avoid Last-Minute Tradeline Purchases”). Instead, aim for a balanced approach that includes managing existing accounts (see “Don’t Rely Solely on One Tradeline”), maintaining a healthy credit mix (see “Understanding Credit Mix: A Crucial Element in Your Credit Score”), and keeping credit utilization ratios low (see “Understanding Different Credit Utilization Ratios”). This comprehensive understanding can lead to more effective credit-building efforts.

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