Things that make you go hmmmmm.....

My wife and I were visiting the credit union yesterday to refinance our car at a lower rate and we discovered something.

In 2005 our credit rating was over 800 and when our credit rating was examined yesterday it was in the high 700's. The culprit? We actually paid off and CLOSED several accounts and apparently paying off credit cards and closing accounts is NOT good for your credit rating! The loan officer told us it was actually better to keep a number of accounts open and simply slice up the credit cards and then proceeded to offer us a credit union card so we could BOOST our rating by having another account. Amazing.

And they wonder why there are credit problems in the US.