Myth 2: An Easy Trick for Improving a Credit Score

Wouldn’t it be nice if all it took to erase a bad credit history was to close a credit card? Since credit history is retained by the bureaus for ten years closing a card that was misused has no affect.

Another reason closing a credit card does not improve a credit score is because it reduces the amount of credit available. Credit scores are also affected by the amount of debt a person has in relation to their credit. Closing a card adversely affects this ratio since it raises the risk of debt obtainable credit.

The proven ways of improving a credit score are paying debts on time, and avoiding using more than 30% of available credit. It might take some time but sticking to these sound financial habits for a long period definitely works wonders for credit scores.