Can closing Credit Card Accounts lower your Credit Score?

May 7, 2010 - PRLog -- The recent federal law has put a restriction on the interest rate charged on credit card holders. Thus, credit card companies are charging fess for some or the other thing to make up for their lost revenues.

“Credit card holders are asked not to close their credit card account as it will affect their credit score. They are clueless as they do not know what to do with the credit cards they do not use. Card holders are bound to pay the annual fees, which is around $99 and $60 fees unless the credit card’s usage is around $2,400”, says Anthony Tribunella of Auto Relief Group.

He adds further, “The fact is that the credit score is not at all affected by closing a credit card account. It is just one of the many strategies of credit card companies to gain higher revenues. FICO/ Credit score is a value which is beneficial for finance companies like banks, insurance companies, landlords and employers to check if we can pay back the money they lend us or invest on us. A higher score will help a person to get a loan with attractive interest rates”.

Suppose, you already have a loan with a bad/ low credit score, you can opt for a loan modification which will help you in reduction of monthly payments by term extension. First step in the auto loan modification process is to obtain your personalized Options Report™. Once you receive your Options Report™, please verify all information is correct. Review the check list; make copies of the requested documents, sign date and package up in the pre paid addressed envelope to your lender. If the lender refuses to cooperate or discuss a modification solution with you, Auto Relief Group can help. They offer a service to purchasers of their Options Report™ that empowers their financial consultants to contact the lender on your behalf and negotiate a desirable loan modification.

About Auto Relief Group
Auto Relief Group offers Car Loan Modification service, we assist car owners in renegotiating their car loan or lease, avoid repossession and maintain ownership of their vehicle by working directly with lenders to restructure loans, extend terms or reduce payments.
We provide our clients with customized reports, expert advice and negotiation assistance when restructuring their car loans.

Website: http://www.autoreliefgroup.com
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