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Closing 23 credit card accounts, will credit score increase or decrease?

The last post in this topic was posted 1843 days ago. 


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I'm in the process of giving a friend advice on her credit cards. Recently, her mom took out a 35k debt consolidation loan to pay off her credit cards, with the requirement that she close all her credit cards except the oldest card. Currently, my friend has 90% utilization. I told her even though she is closing the credit cards, her credit score should increase because the utilization would decrease to less than 3%, plus she still has a installment and auto loan on her credit report. Is my assumptions correct?


Your friend has "Bigger Fish To Fry" than her "Credit Score". :blush:


The previous installment loan is a debt consolidation. She's trying to do all the right things to not let this happen again. I helped her with a budget that she promises to follow.


In this light, you should add to your discussion about her "Credit Score" a link to Dave Ramsey, (and let her decide whether her long term financial health will see more benefit from pursuit of a "Credit Score", or forgetting about credit for awhile and living within her means). :blush:

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First things first. Someone that runs up debt on a pile of cards and takes out a consolidation loan should be focusing on controlling their budget, not their credit scores.






As uncool as it may seem (based on the commercials we see on TV everyday), sometimes doing the right thing means going without crap for a while. The basic formula is "credit != debt". Spend within one's means, then worry about optimizing the credit score. Until then, the score is pointless.

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So, she already has one debt consolidation loan that isn't paid off, a new consolidation loan that she couldn't qualify for so her mother is bailing her out with a personal loan and she still has half a dozen or so open credit cards and a shiny credit score with which to dig yet another new hole filled with debt?

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Until she is cut off, this cycle will continue.


Sure it's tough sometimes trying turn off the ATM machine to family members, but believe me, it can be done. I've managed to facilitate in someone's homelessness and take thier kid in about a week's time.



That might have been the most eff'd up statement I've ever made.

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The last post in this topic was posted 1843 days ago. 


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