Will reactivating an old account help my credit score?
Tiny Credit Tip. Will reactivating an old account help my credit score?
I really do love it here in the tiny house. This week I will show you the bathroom and the bedroom today in episode number four.
I had a question come through on facebook about a borrower that a mortgage lender was working with, and the borrower had no revolving
accounts except for one that had gone dormant.
The loan officer’s question was, “If the borrower reactivated an old account, would the borrower see a boost in their credit score?” and of course it will. Especially, if the borrower only has one revolving account. Revolving accounts are very important to a credit score, If the borrower has one revolving account reactivated and it has seven years of good payment history, the borrowers credit score will improve because of the benefit from all of that good history on the account.
If you try to reactivate an account and the credit card company tells you that they have to pull a new credit inquiry, I would not let them do that. That will actually hurt your credit because they are adding a new account and a new hard inquiry.
If you are trying to quickly improve your credit then adding a new account is probably not good idea. If they can just start using the credit card again, just reactivate the card, it can be a great way to boost your credit score. If borrowers don’t have any active revolving accounts, getting that one inactive account going again could give them in between 40 points up to 90 points maybe even more FICO score points than they had without that active account.
Let’s go ahead and take a walk over to the bedroom. I want to do a outdoor shot at some point because you hear the water roar when I come home but it is dark. This is the bathroom of the tiny house and the bathroom it is just a shower, sink and water closet. The laundry in here which is nice stack-able laundering and the bedroom. The bedroom is not huge it has a queen-size bed. I like a wood style here but just a little closet it really is fine for somebody with just themselves. That’s the inside tour of the tiny house. I hope you enjoyed it don’t forget six steps to better credit score for free on my website get along ready dot com be sure to check that out take advantage of it so you with a little bit of me in a tiny house we’re going to change the credit industry.
If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I’d be happy to answer them.
Go to www.getloanready.com to find other ways to improve your credit score. I’m Dave Sullivan here for the credit guy TV so you with a little bit me we’re going to change the credit industry thank you
FICO9 Trended Credit Data included?