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The credit card catch-22
By Dan Tilkin, KATU News and KATU.com StaffWith so many people in trouble with credit cards, what's the best way to protect your credit? Is it by keeping the cards or cutting them up? As it turns out, the answer is a catch-22. PORTLAND, Ore. - With so many people in trouble with credit cards, what's the best way to protect your credit? Is it by keeping the cards or cutting them up? KATU.com research turns up that the maximum number of credit cards to carry at any time is four. An additional car loan tends to lower your score, while a home loan or line of credit tends to raise it. Meanwhile, the experts warn against cancelling the oldest cards in your stack. The credit reporting agencies -- TransUnion, Equifax and Experion -- use that "length of time" measurement to increase your score. Cancelling the oldest card may very well drop your overall score. A secure Web site out of San Francisco, CreditKarma.com, provides a simulator that -- for free -- taps into your real TransUnion FICO score to show you exactly what would happen if you cancel your oldest card, add a new credit card or increase or decrease your credit limits. The site gets paid by the credit partners that advertise offers for people with specific credit scores. Meanwhile, you'll find several other helpful links, including a FICO score simulator provided by BizRate.com, below. Hotlinks |
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