What does revoloving accounts mean on your credit report?

Question

Can these be closed ? Does having these lower your score? Are these open accounts that can be reopen/used again? What the best way to clean up your credit score?

The revolving accounts are paid but they still showing as revolving accounts, can one of these be open so that I can use it to help raise my score? Seems I can't get a new credit card since they turn me down but my score is average so I am not sure what is keeping me from obtaining a new card, so if I contact one of them on my credit report can I get the card re-issued or go through the application process again and be turned down by the same bank on my credit report?

Answer 1

WOW ...5 questions for the price of one ! LOL

1. A revolving account is a credit card , store card or home equity line or credit that gives you a certain credit line dollar amount for your usage. Say your credit card has a 2000 dollar limit ...when you pay down the balance to 1500 dollars then you have 500 dollars of available credit.
2. Yes...write to the company that carries the account and they will close it for you . Even if you have a current balance you can request it be closed to new purchases.
3. Having one or two will boost your credit score if the accounts are in good standing ie: paid on time and not maxed out to the entire dollar amount available to you. Having too many will lower the score even if they are in good standing...because if you have say 5 accounts and each one has a credit limit of 5000 dollars ...bankers look at not only what you owe on them....but also at what's available to you to spend on them yet....so they may be looking at 20,000 dollars available for you to spend any way you wish ...and that becomes a potential for debt...so they have to consider that potential against you in your credit score.
4. Yes they can be re-used as in the example above. when ever your balance is less than the dollar amount of credit available on the account.
5. The best way to clean up your credit score is to close all accounts you have a zero balance on them by writing to the companies and requesting closure...some of these companies will not actually close your account when you write so make sure that you send your letter by certified mail with return receipt requested so that you have a record of their having received it as well as a copy of the letter you send. Accounts with balances....try to consolidate the accounts if possible into one credit card or revolving account with the lowest interest rate and then close the other accounts. If you cannot consolidate them ...then request that they be closed to future purchases by wriiting and sending a letter by the method described above. Get yourself down to 2 to 3 revolving accounts and make sure that what you have available
as a credit line is enough for emergency needs but is not excessive based on your income. The best possible scenario would be one consolidated account that you keep the payments on time every month and one account available with say 5000 to 8000 dollar credit limit that YOU DO NOT USE unless its an emergent need...like the refrigerator broke down and you have to get a new one .....don't use it for frivolous department store purchases. Do not apply for too much credit ...each application goes against your score if you apply for say 5 accounts in one month ...that is counted against you regardless of whether or not the credit was granted. I think they look at the last 6 months.Lastly...keep a close eye on your credit report to make sure that it is correct...you can contact the credit bureau and make statements of correction to your report which they will investigate for you and make changes if you are correct.
Good Luck !

Answer 2

Revolving accounts are credit obligations that have a credit limit, funds can be drawn, paid back and drawn again. A credit card is the most obvious example of a revolving account.

Yes, revolving accounts can be closed.

Having too many open accounts, or particularly open accounts with balances that are greater than 50% of the credit limit will lower your credit score. Having 5 or 6 open accounts will not hurt your score, if the balances are zero or low relative to the credit limit.

Yes, the accounts can be used again.

Best way to "clean up" your credit score. Pay down debt, make payments on time, pay collection accounts in full.

Answer 3

It basically means that she did not pay on it and it was charged off by the company but that you still do owe it. Bad mark on her credit report. These charge offs stay on her report for up to 10 years I believe or it may be 7. Most likely, these credit card companies have already turned these accounts over to a collection agency which will also go on the credit report.

Answer 4

A revolving account is like a (example) capital one credit card that has a high or maximum limit of lets say, $1000.00. You pay on this account each month and it is a revolving account because until you close it out, as long as you have an available balance left to charge on, you can continuosly use this.
You can close this account any time you like by paying off the balance and asking the company to close out your account or you can pay it off and just maintain a zero balance, which is next to best. It is okay to use this card for lets say gas purchases each month and pay the total amount due each month on the bill, this way, you will continously recieve a rating on this account, as paid as agreed which is perfect for your credit. If you close it, and try to re=open it, you must submit a new credit application and be approved to open a new account. You will not receive the same account number. Inquiries made to your credit, actually lower your credit score so the fewer inquiries the better off you are.
If you have, lets' say three credit cards, they are considered revolving, but let's say that they are all at their maximum and all you do each month is pay the minimum due. This lowers your credit score. To have let's say three cards, all with a low low balance is okay, and looks fine. But to have have them all or even just one at its max does not help your score.
Pay off the balances on all revolving credit, if you have many, many, then close out a couple after they are paid.
Pay off other items on your report, if you have any charge off's, pay them, if you have something like a car payment, well you certainly can't pay it off, however be sure to pay on time and try to double up on payments. All of this helps your score.
I'm sure if you put key words into the internet search engine, such as "credit score, " it will pop up with all kinds of helpful info for you. Mine sucks big time. I managed to clean it up and it was up to 700 but this last year has been a nightmare and unavoidable and now for seven years, (that's when derrogatory information falls off) my credit is bad. You can't get crap without a good credit score, take my word.

hope this helped

Answer 5

These are credit cards usually. "Revolving" credit reflects debt that you have month-to-month that you can either pay off at once or over time. It mostly refers to credit cards (VISA, MasterCard, department store cards, gasoline station cards, etc.), but it can also refer to other types of revolving credit such as a home equity line of credit.

These can be closed once you pay their balance off. Having them, in and of themselves, doesn't lower or raise your score ... it's how you handle the debt (i.e., do you pay on time every month?) that will raise or lower your score.

Yes, revolving accounts can be used again. As long as the account is open, you can use them up to the credit limit on the account.

Best way to clean up your score: Pay down your debts. It's as simple as that! Start with your highest interest rate debts first, then work your way down through your debts.

Answer 6

revolving accounts just means you don't pay it off. It doesn't lower your score. Yes you can pay off and then use it again.Try calling a non-profit credit counseling agency for more help.

Answer 7

It refers to accounts that do not have fixed payments, (Such as a house or car payment. )Usually this refers to credit cards.