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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308686  
Subject: Re: How to fix credit score? Also why is it so l Date: 8/15/2003 3:29 AM
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Should I pay off all these small balances and close the cards? Should I leave the credit cards active with no balances? Alot of these are ones that my wife had when we got married.

I need to know what would be the best way to get my credit score higher. If I need to consolidate these into one I can do that as well.


With the recent late payments, I am sorry to say that Father Time will be the best healer for your credit score. However, you can work on improving the other factors which include the number of cards that you have and your debt to available credit ratio.

In my opinion, you would be best off to leave the cards open as you pay them off. However, you need to be sure to remove the temptation of using the cards. The easiest way to do that is to cut up the card. The reason I feel it is better to leave them open while you continue to pay down debt is because it does not skew your debt/available credit ratio and it presents the opportunity for balance transfers.

Leaving cards open vs. closing the cards has been debated with regularity here at the CC board. There are pros/cons to each approach and you may find it beneficial to search through the board for some of those discussions to help you draw your own conclusion.

Are you snowballing these debts? Are you familiar with that terminology? If not, there is a great calculator located in the box to the right of this message. Depending on the size of the snowball payment you can make, you may want to knock off some of those small balance cards to provide an emotional boost.

Another option would be to try and balance transfer the $1350 spread out on the smaller cards to the credit card with the $6500 limit. This would result in having two credit cards with a balance and the two car loans. That may make it a little more managable.

Lastly, you did not mention the current interest rates on any of the credit cards and/or loans. That may impact the approach you take slightly so if you are comfortable, share the rates as well so people can offer additional advice.

Hope that helps some.

dt
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