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The Closing of Accounts and your Credit Rating

It is much easier to maintain a healthy credit when you keep the prime objective in mind. Know five smart strategies to cancel an account without harming your credit rating or score and look at five behaviors that should be avoided.

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When you are considering proceeding with the cancellation of an account it is advisable to start with the inactive accounts that you no longer use. You could be paying unnecessary commissions for accounts that can attract identity thieves. Also, it is advisable to cancel first those with high annual commissions.
Before canceling an account, check Your Credit History online (www.transunion.com.do) to verify the condition of the accounts and help your credit score or score. Look for overdue payments, high balances, or other indicators of identity theft. Verifying Your Credit History can save you research time by providing the grantor's contact information.
Cancellation of accounts with high balances could help your score. To achieve this you can ask the credit grantor to close the account for new charges while you are paying the balance each month. This can be a good way to prevent people who spend heavily on their credit cards from incurring new expenses while trying to reduce their balances, but pending hidden commissions.
Set up a card for regular use and try to pay the entire balance each month as you cancel accounts to improve your score. Reserve the other cards only for emergencies, thus avoiding the temptation to overspend.

The wrong way
You do not cancel the oldest account in Your Credit History as you cancel accounts to help improve your score. This could shorten your credit history and, therefore, damage your rating.
Do not dump old cards, waiting for accounts to be automatically canceled. When you cancel accounts to improve your score, the safest way is to communicate your decision to the customer service department of the credit company.
If you decide to cancel accounts to try to improve your score, you should not feel pressured to cancel multiple accounts at the same time. If you are not sure about the effect on your score or the amount of indebtedness you need to have, the best plan is to gradually pay and cancel the bills. If you wish to cancel multiple credit accounts, you cancellations to reduce the possibility of raising suspicions of potential creditors.
Avoid placing all your balances on a single card as you cancel accounts to help improve your score. If your credit balances rise above 35% of the available limits, this could negatively affect your score.
Monitor Your Credit History for updates and inconsistencies once you have canceled accounts to help improve your score. It waits 30 to 60 days for the credit grantor to report the account closure and TuCréditoSM for TransUnion updates its records. While the accounts and payment history remain in Your Credit History for 7 years, these must be marked "canceled."

The above advice and recommendations are simple suggestions, which may or may not be useful to you; each consumer must carefully evaluate their personal financial situation before making decisions that could affect their financial and / or credit situation. Before making a major credit or financial decision we recommend you seek professional advice. TransUnion is not responsible for the consequences that could result for each user to follow the recommendations noted above.