Credit Tip - 15% of your credit score is made up of

Your next Credit Tip. 15% of your credit score is determined by the age of your credit. Many people hurt themselves when they accept offers for low interest rate credit cards. The new card has no age/history as it is a brand new card. They transfer their balance to the new card (often maxing it out which hurts because ...they have borrowed more than 1/2 their limit, see our last credit segment)

They close the old card they transferred the balance from. Once that old card has been closed for 6 months they lose all the history of that card. Making the average age of their credit younger and dropping their score. I'm not saying don't accept the new card. It often makes sense though not always. Just pleas...e don't close the old card. Any questions on this feel free to post.