What is the best way to have great credit for a future home buyer?

I have a car loan and i just consolidated my credit cards into a loan. So i have 2 instalmentloans. Now i can close my credit cards. My old credit cards that have a great history have the worst deals. They offer $1000 limits and no rewards. So i want to cancel them but will effect my score? i mean the history of payments should remain even if the account is closed. I just want to keep one card but it has a $20k limit. is that too high?

What is the best way to have great credit for a future home buyer?fha loan

Pay off those older accounts that do not have desirable terms, but do not close them because that will not give you the best result with regards to your credit score.

Having them open but paid reducing your %26quot;balance to credit limit%26quot; ratios thereby increasing your credit score. Take the balance of 20k, if you only have 1 open account at 20K then that is 100%, same 20k balance with 5 open but 4 with -0- balance (other 4 were 1000 each credit limits) then you are 80%. The scoring system will not use closed accounts in this calculation.

I have provided a website from the Federal Trade Commission that is designed to assist consumers with questions regarding the credit scoring system. Hope it helps!

What is the best way to have great credit for a future home buyer?

loan

Keep the accounts open, but cut up the cards. If you prefer, call the issuer with the $20k limit and ask them to lower it to a more reasonable amount (2-5k). This way, the accounts are still open and improving your score, even though you%26#039;re not using them.