Friday, August 19, 2005

Your Credit Score and the Rising Interest Rates


As we see the fed rising interest rates on a consistent basis does it have anything to do with your credit scores and your credit report.

Yes indeed.

The first thing you have to do is to take a list of all the loans which you have got at the variable rate.

It may be your car loan or your store cards or whatever it is.

Start paying them off as soon as possible as the rising interest rates will make a big hole into your valet.

USNews.com: Money: Time to prepare for rate hikes (8/18/05): "Zero out the balances on your variable-rate cards, but don't necessarily cancel those accounts. Approximately 15 percent of your credit score is based on the length of your credit history. So if you close out a credit card account that you've had for a decade or longer, you may end up shortening the average length of your credit relationships. And that could hurt your credit score, which is the numeric value that lenders rely on to gauge your credit worthiness. "

One more thing is dont close out the Credit cards which you paid off as long as it is does not invite a membership fees.

Johncy Edward


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