In order to feel truly financially secure many of us look to eliminate credit card debt completely. If you completely eliminate credit card debt you may fail to adequately show a consistent payment history. Also, many people like to close their accounts after they eliminate credit card debt. The more active accounts you have, the better your individual report will look to future creditors. When you eliminate credit card debt you still want to keep the cards active for show.
When the accounts are abruptly closed this sends a red flag to the potential creditor. He really wants to track your payment history but instead he faces a brick wall of closed accounts. In many cases the individual didn’t meet the requirements because he abruptly decided to eliminate credit card debt. Following that, he closed each of the accounts. In order to keep a strong credit report it is important to keep your accounts active and open. This is not to say that you shouldn’t eliminate credit card debt. However, it is better to eliminate it every month by paying a small balance in full rather than paying everything off in one lump and closing the accounts. Read on: surendettement: comment en sortir (in French) and Finance and Financing