Personal Finance
A Credit Card Move That Can Hurt Your Score
A credit expert warns that paying off a loan early could surprisingly lower your credit score.
Many people work hard to pay off their debts. They think paying off a credit card early is always a good idea. But a credit expert shares a surprising truth.
Micah Smith, a credit repair expert, says paying off a credit card or loan completely can sometimes hurt your credit score. This happens when the account closes. Older accounts with a good payment history help your score. When you close them, that history is gone.
Do not rush to close credit cards you have paid off. Keep them open if they are older accounts. This shows you can manage credit over a long time. This helps build a stronger credit history for you.
Source: Fox Business
#Personal Finance#Credit Score#Debt Management
