Actions that help or hurt credit report

How you manage new credit is worth 10 percent of your score, and the number of different types of credit used is also worth 10 percent of your score. So, you'll have a higher score if you have a mortgage, credit cards, and a car loan than if you just have a mortgage. However, don't take out more debt just to have more accounts. Just having accounts open, but without balances, can help.

How long you've owned your credit accounts is worth 15 percent of your total score. This is the point that seems to be most confusing to readers who are concerned about canceling a credit card.

Because so much of your score is based on how you manage credit accounts, closing an account that has been open a long time (more than 5 to 10 years) might damage your score.

What if you've only had a credit card for a year or two? If you have other credit card accounts, and you want to close a new one, go ahead. Closing a newly opened card won't hurt you that much.

The biggest mistake that consumers make is closing a credit account that has a balance on it. If you have a balance on a card, try to avoid closing the account or your credit score will take a big hit.

Contact Ilyce Glink at www.thinkglink. com, or by mail at Real Estate Matters Syndicate, P.O. Box 366, Glencoe, Ill. 60022, or by calling her radio show at 800-972-8255 from 11 a.m. to noon Sundays.