Credit “Clutter”–Clean it up!
One of the simplest ways to improve your credit is to “clean up” unnecessary accounts that you have open. Since most consumers are inundated with pre-qualified/approved offers and offers of instant credit at many retailers, it’s easy to end up with numerous credit accounts that you don’t really need or use. Often my mortgage clients will discover accounts being reported to their credit that they no longer have cards for, paid off years ago or have forgotten ever opening.
Paying a credit balance on an account off and cutting up the card does not close the account. You must request, in writing, that the creditor close the account and report it as “closed at consumer request” to the credit bureaus.
Since a regular review of your credit history is a good way to monitor whether or not you’ve been the victim of identity theft, when checking your report, identify all the open accounts listed. Determine if you really need the account or if you can close it permanently. Draft a letter to the creditor and to the credit bureaus indicating you wish to close the account as referenced above.
Be sure to include your name, address, contact number, the creditor’s name and the account number. (Note: account numbers shown on credit reports are not always complete or the same number on that’s on the credit card. Include your social security number in the letter if you are unsure of the accuracy of the account number.) Send a copy by mail to each credit bureau and the creditor.
Close all accounts that you can reasonably do without. Use a Visa, Mastercharge, American Express and/or Discover card for credit purchases. Close department store or specialty shop credit cards. By reducing the amount of your unnecessary “available” credit, you can improve your overall credit rating.