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Closing a credit account might sound like ripping off a Band-Aid: sweet release. But it’s not always that cut and dry. While it sometimes makes sense to close an account, it’s not something you should do without considering potential consequences on your credit history and score. Here are the factors you need to consider before you pick up the phone to cancel your credit accounts.
A poor credit score can have a huge impact on your personal finances. In some cases it can restrict you from getting certain types of credit or even stop you from getting credit altogether. For individuals, dealing with a bad credit score can be tricky enough, but if you’re hoping to start a business, having a poor personal credit score can create further obstacles. This isn’t to say that those with a bad credit score should forget the idea of starting their own business. In fact, if you know where to look and who to turn to, there are plenty of financing options designed to help those with a poor credit rating overcome this and successfully launch their business.
