Credit score needs a quick increase
Hi Ross, I have a client who wants to close a couple of NEW credit card accounts for the purpose of adjusting their overall credit balance to credit limit ratio. Is that a good idea?
Don’t close the cards unless a lender insists. The quickest fix bar none is to ensure that all balances on her cards show zero on the credit report as quickly as possible.
To do that, ensure she pays them off at least three business days BEFORE the next statement date for each credit card – do not wait for the statements to come – then it’s too late.
And then make sure the balances stay zero till their statements arrive in the mail.
Rinse and repeat as long as is necessary.
You might be surprised how much of a boost this can give – usually only takes 4 to 6 weeks on average for the full benefit to be achieved.
If you would like to contact Ask Ross with any personal finance question at all, please jot it down below or contact us at 416-989-1000.