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How Canceling Credit Cards Can Affect Your Credit Score
By Mick Bernard

Although some credit restoration companies may encourage participants to cancel their cards immediately, the fact of the matter is that doing so can negatively affect your score. Any credit repair program worth your time will know this, and help you navigate through the complex system. People looking to go through the credit restoration process should know that canceling cards may temporarily drop your overall credit score, but over time that number should go back up. Here's why:

• The length of your active accounts will be cut down. Having a couple of credit cards that have been in good standing for years can help boost your score. Cancel them, and you cancel out some of your positive history.
• The type of credit you use will be less diverse. Cutting down on your revolving credit may be a good idea for long-term credit restoration, but in the short term it hurts your score.
• Your overall credit limits will go down - and that can be a bad thing for your credit score. On the other hand, by having lower limits, you'll be less likely to get in over your head in debt - something that can save you a lot of time dealing with credit repair programs.

In short, there are benefits and drawbacks to pretty much any decision you make dealing with credit. The key is to make sure you make the best decisions possible for your future; thinking long-term is going to benefit you much more than focusing on the short term.

If you're not sure what to do, get in touch with a credit repair program or talk to a restoration expert. Make sure you choose a company or individual who knows what they're talking about and has good references, and you'll come out on top.

Mick is a Certified Restoration Expert and President of Credit Strategies, a credit consulting firm in Scottsdale, Arizona. Credit Strategies works with consumers with less than perfect credit increase their credit scores so they can qualify for the best possible financing. If you're looking for some credit restoration then conciser our credit repair program.

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