The Credit Repair Blog

Yet another reason to opt out.

I’m sure it won’t come as a big surprise to most of you but credit reporting agencies make a good deal of money from collection agencies. Experian even advertises it on their site. With a suite of services available Experian assists in locating and collecting from individuals around the country. While I suppose this is legitimate it certainly lets you know where you stand with the Credit Reporting Agencies. They are not your friends.

One damaging myth that seems to be widely held is that closing old accounts, especially ones with a checkered hsitory, will help raise your score. Couterintuitive as this may be it just flat out is not the case. Age is a very important factor in determining your overall credit score and losing an older tradeline will often do more harm than good. It isn’t unheard of for people to get a negative mark removed only to se their score decrease. In fact I would venture to guess that unless a tradelines comes complete with an annual fee it would be wise to never close any revolving accounts, and certainly not close down ones that are among your oldest.