As you pay off your debt and work on increasing your credit score, remember that closing old credit card accounts can work against you. Credit scoring systems consider the age of your accounts as well as available credit and payment history in calculating your credit score. An established account with available, unused credit will actually boost your score. New, maxed out cards will work against you – even if you pay them on time.

So when you pay off an account, don’t close it. Either use it only for purchases you know you’ll pay in full every month, or stash the card someplace safe – but leave the account open.

What are some effective strategies you’ve used to raise your credit score? Or what have you done that backfired?

Jackie