[akaivyleaf]

Here is how I understand getting and keeping a good credit score. This is from the constant pounding of advice from both Dave Ramsey and Clark Howard and even Suze Orman. Let me use this example.

Say for instance you have 2 credit cards, with a combined AVAILABLE credit of 10,000. You charge 2500 on each card for a total of 5000. Well you have spent 50% of your available credit so your debt to credit ratio is 50%.
Same scenario with a twist. You pay off 2500 on one card. Your debt to credit ratio is now 25%. You're looking better credit wise. But you turn around and close that account. You're back to 50% now. Instead of having 10,000 available you're down to 5000 available.

Creditors look at your spending potential when deciding if you're a good risk or not. While you might not charge the entire 10,000, you have the potential to do so. Do they want to add more to that available line? Thereby increasing your credit to debt ratio? But that doesn't necessarily mean that since you have a "high" line of available credit, that its good. Most creditors look at it unfavorably in terms of how the higher your available credit, the lower your overall credit score.

Some accounts you can't keep open like car loans, once you pay off that account, its closed, but you do have more le-way with credit cards. Them some lenders look at the types of credit you have... revolving AKA Credit Cards (the most volitile because you can get a while hair and go shopping), Mortgages, installment loans (car loans and others with fixed terms) and each of these has factors that determine whether they are "good" credit or not.

Does my explanation make sense?