Open accounts are accounts that you have opened by going to a creditor to get a loan for a product or service. These can have a balance or you can pay them off each month. It can be a revolving account (an account that has no payoff date and the payment varies depending upon the balance owed) or an installment account (an account with a set payment and a set payoff date). Open accounts are necessary for a good credit score but too many open accounts can be bad for your credit score also. There is a balance that needs to be in place.

Tagged with: • •

Like this post? Subscribe to my RSS feed and get loads more!