Other Steps

Most people only need two or three credit cards; so that’s a number to aim for, if you currently have more accounts. Just remember you don’t have to get there overnight.

It can improve your credit score to get rid of extra accounts. But, again, they key is to consider your utilization ratio before you get rid of any credit cards. Don’t close two and leave two maxed out.

For the best effect on your credit ratings, if you are going to close out more than one account, do it slowly over a period of several months. When you’ve paid down your outstanding balances enough to consider getting rid of one of your cards, don’t close out the account you’ve had the longest. Even if it has the highest interest rate of all of them, keep the credit card you’ve had for the longest time.

Lenders like to see a long credit history. So, if you close the one account you’ve had for 20 years and keep the two you got within the last three years, all of a sudden you look like a much newer borrower. This will adversely affect your credit score.

Also, check your credit reports after you have closed the accounts to make sure that they were reported as “closed by consumer.” This will have the most positive effect on your credit rating.

Next: Show Stability