Home Buddies – Home Ownership Coach – Houston, Texas

Good vs. Bad Revolving Accounts

National Credit Cards and Bank Credit Cards

National credit cards and Bank credit cards are treated as respectable credit cards by the credit scoring system. These types of companies only lend to high credit worthy individuals. These national credit card companies include credit cards such as Discover and American Express. Another quality credit card would be a credit card issued by a national bank such as Bank of America or Wells Fargo. National credit cards and national bank credit cards are the best cards for your credit file/report. These types of credit cards are the ones you want to establish and keep open forever! The reason why you want to never close these types of accounts is because once they have been open for over seven years they become one of the key factors that help you achieve an 800 credit score.

Financial and Finance Company Credit Cards

There are other types of credit card companies that are called “easy lenders”. These types of lenders will lend to riskier customers. You can identify these types of credit cards because they have the name finance or financial at the end of their name. The credit scoring system will penalize a person with a 700 plus credit score if they were to add one of these types of credit cards to their credit file. Therefore, these cards should only be used under very specific circumstances. For example, if you have recently filed a bankruptcy or have bad credit and can’t qualify for a national credit card then it would be necessary to start out with a financial company credit card to establish some new credit. However, once you have improved your credit score as to where you can qualify for a national and/or national bank credit card you should do so. In addition, you should close your old financial or finance company accounts. By doing this, you will put yourself on the highway toward achieving and 800 credit score!

Cliff Pape
Home Buddies