Credit Card Solutions

Credit Card Solutions

Credit Card Solutions might mean debt consolidation or even credit counseling. Let's face it, not everyone can fix credit mistakes unless they go to a reputable company. But who wants to turn their personal housekeeping over to a company they don't know? If you want to Do it yourself credit repair, then you need to learn about credit report repair, credit laws and the factors which affect scores. Or, you get a really good credit repair software to increase your credit score. AVAIL Credit Coach is the best. No need for credit card consolidation as a debt solution, you have the # 1 online software on the market. Here are also some tips for credit card solutions.

One of the most common questions I get is what to do with old credit card accounts. Closing credit card accounts hurts your credit, but sometimes it might make sense to take the hit. Remember, the overall goal for you  is to increase my credit score.

If you have a bunch of cards and you haven't used them in years, be aware that the lender might decide to update their customer file and send you a new card. Are you still at that old address?
To ensure against Identity Theft, send a letter to the creditor closing the old credit card accounts. It's important to get the notation  "account closed by account holder." If you had the AVAIL credit coach, you could easily close your account then check your report to see how the action is being reported.

Part of debt management is to learn how credit is calculated. Will closing a credit card account hurt your score? The answer is yes, but how much depends on available credit and the ratio you have used.

If your combined credit limit is say, $70,000 over five credit cards and you are using $60,000, then closing an old account with a zero balance isn't smart because it narrows the ratio of used versus available credit. On the other hand, if your ratio is less than 30%, you might want to close that old account and take the temporary hit in credit score.

Very soon this will be a moot point because lenders will once again start to charge annual fees for credit cards. Wouldn't it be great if there was a revolt and people just stopped charging? This would really help to clean up credit report. In fact, lenders would have no choice but to start to offer credit once again to people-even those with low credit scores.