Best Answer: Not sure I agree with the percentage limits you mention but The credit score looks at the difference between your available credit and what you’re using. Shut down accounts, and your total available credit shrinks, making your balances loom larger, which typically hurts your score.also since the score also tracks the length of your credit history. Shutting older accounts can also make your credit history look younger than it actually is, which can hurt your score.
Some recommendations on improving or cleaning up you score:(Note:percentages are generally accepted ratios, but actual value of each factor may vary by lender)
Pay your bills on time. Your payment history accounts for 35% of your total credit score
30% of your score is based on how much you owe. Owing some money is fine, but if your
balances are too large, lenders worry that you're overextended and won't be able to repay them.
About 15% of your score is based on how long you've had a credit history; the longer, the better. Avoid closing a lot of old accounts or opening several new ones, because that will lower the average age of your accounts
New credit makes up 10% of your score; lenders worry that you'll borrow too much money if you've recently opened a number of new accounts.
Finally, 10% of your score is based on your mix of credit cards, mortgages, installment loans and other debts. Also,Lenders are most interested in your history of managing credit card debt so if your goal is to improve your credit score, pay down your credit card debt.
Ben M · 9 years ago