Should You Close Old Credit Cards?
A lot of people assume that if they are not using a credit card or department store
card anymore that the best thing to do is close the account.
That is far from the truth,
as it can actually have a reverse affect on your...
More
Should You Close Old Credit Cards?
A lot of people assume that if they are not using a credit card or department store
card anymore that the best thing to do is close the account.
That is far from the truth,
as it can actually have a reverse affect on your credit score as one might think.
Logical thinking would be to close an inactive card, but doing so will result in one
less “open” account reporting to your credit.
This will also affect your average age of
accounts, which is incorporated in the credit scoring model.
There are so many benefits of leaving accounts open, even if you do not plan to use
them.
Like mentioned earlier, having several older and established accounts
reporting to your credit will increase your average age of accounts.
Naturally, the
longer the accounts are open, the older your average gets.
This is very helpful when
you do open a new credit account, as the older aged accounts will help offset the
credit score ding you will initially take for opening the
Less
