On Thu, Jan 6, 2011 at 4:21 PM, G Money <gm0n3...@gmail.com> wrote: > > > I dunno.....i though it was all bullshit. I paid off the TV and the > furniture set the next day, and my score shot back up. Stupid.
That's because your "credit limit to available credit" ratio got a lot more favorable. Closing an open account, which would seem like a good thing, can be bad for this reason.. because let's say you've got two $5,000 credit cards with $2500 on each one. You transfer the money to one of them and close the other, and suddenly your credit drops quite a bit because instead of having 50% of your credit limit available, you have 0% of your credit limit available. All the people who had their credit limits dropped by the creditors in the last few years suffered the same thing. Their debt ratio went up through absolutely no fault of their own. Rick ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:332986 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
