Dear Credit Smart, I’m refinancing my house with a cash-out option, meaning that I will be paying off most of my credit cards. The mortgage company wants me to contact each credit card account and tell them that I will be closing my account with them per my refinance. My question is: will closing these accounts hurt my credit score for future purchases, such as a new vehicle? – Tom
Dear Tom,It sounds like your mortgage company is behind the times. While paying off credit cards and closing accounts was the practice in years past, scoring models have changed and the information you received is outdated.