MSN Money (www.money.msn.com) dispels common credit card myths. Here are a couple that we at Unity One Credit Union feel are very important.
- Myth: Opening a new credit card damages your credit score. Believe it or not, a new account handled well can improve your score. It shows lenders that you are responsible and credit worthy. However, opening up too many cards in a short amount of time can speak volumes and not in a good way. The inquiries may lower your score temporarily.
- Myth: Canceling cards may help your credit score. No, no, no. Closing accounts could have the opposite effect. When a card is canceled, it reduces the amount of credit that has been extended to you, which means that lenders have less to go on. It increases your "debt-to-available" credit ratio, which is one of the major credit-scoring components. The trick is to not to use your card. Cut it in half or freeze it. Then, you certainly won't spend excessively.
About Unity One Credit Union
Established in 1927, Unity One Credit Union is the oldest credit union in Texas. A member-driven and not-for-profit cooperative, Unity One CU served the employees and families of the BNSF Railway for 70 years. However, after transferring its corporate headquarters to Fort Worth in 1998, the credit union expanded its field of membership to include other non-railroad companies, organizations and individuals.
Today, anyone who lives, works, worships or attends school in Fort Worth, Blue Mound, Saginaw, Haslet, Keller, Colleyville, Bedford, North Richland Hills, Southlake, St. Paul, MN and Kansas City, KS may apply for membership. Unity One CU has nine branches to serve over 28,000 members nationwide. For more information about Unity One Credit Union, visit www.unityone.org. Think outside the bank.™