With the current economy and the real estate bubble that has been experienced of late, credit scores are becoming even more important, well, high credit scores that is.
While the credit score cut off for getting the best rates and the best deals on financing used to be around 700 now it is getting higher and in order to qualify for the best rates you will probably need a score of 760. For now, anyway, so long as money is tight and banks are nervous.
And of course, there is all of the conflicting information out there about how to best manage your credit.
It is true that if you open a new account your credit score can take a hit. And if you close an account that you are not using your credit score could also take a hit. Much of it is sort of a “damned if you do and damned if you don’t" so you need to just do your best. If you need a new credit card, get it. If you don’t need it, don’t get it. If you’re not using a card you should probably try to keep it, even though you don’t use it because of the all-important debt to available credit ratio. If you have available credit, keep it available, you don’t have to use it and it may be best if you don’t but if you keep it available your debt to available credit ratio will remain high.
Best advice actually is to pay your bills on time and avoid excessive credit (and if you need credit repair, get it done!).