BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Limit your applications to extra credit cards
|
|
|
Miss payments
|
|
|
Max out your credit card
|
|
|
Close other credit card accounts
|
Detailed explanation-1: -Credit experts advise against closing credit cards, even when you’re not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it, ” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.
Detailed explanation-2: -The numbers look similar when closing a card. Increase your balance and your score drops an average of 12 points, but lower your balance and your score jumps an average of 10 points. Two-thirds of people who open a credit card increase their overall balance within a month of getting that card.
Detailed explanation-3: -With that in mind, you should know that your credit history will not be damaged by closing a card. As long as you used the account responsibly and made each payment on time and avoid charge-offs while the account was open, closing an account won’t look bad on your credit history at all.