We had a borrower yesterday who made $600,000 per year and he had almost no consumer debt or late payments…and his credit score was too low to get the Home Equity Line of Credit he desired.
This stellar borrower’s score was too low b/c he closed out all of his credit cards and trade lines (after he paid them off). He only had two open accounts.
If he had not closed out his accounts, his scores would probably be in the high 700s (he was below 700).
We bring this up often, but closing out accounts typically hurts your credit score.
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