Counter Intuitive
As we all know, credit scores have been my obsession. Last week, I had an interesting conversation with the Real Estate Agent.
Clifford: Yeah I’m all about getting my credit score up.
Real Estate Agent: That would be good. We need to get your score bullet-proof.
Clifford: I noticed that I have some open accounts from 10 years ago. I think I’ll close them so I don’t have more credit outstanding.
REA: Are you kidding me? I closed out a credit card that I never used and my score dropped 15 points!
He’s right. Closing out old credit cards actually hurts your credit score. Why? I’m glad you asked. The credit score is also based on credit history. You close out history and your score drops. Credit Score’s like to see nice long credit histories that are in good standing.
CNN finally wrote something that I agree with. Their article entitled "Five Ways to improve your credit score" pretty much outlines what I’ve been rambling about. It also addresses about today’s topic.
Cliff,
Do you generate the extra income mainly in the form of rental income from the two properties that you own? Any other streams of income that you can give ideas on? An increase of 22% in income is a great achievement! Congratulations to you changing directions from a year ago!
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