Unless there is an annual fee, then the answer is a definite no! The reason you don’t want to close your credit cards is because the longer the credit history, the higher your score. Another reason, is your balances are calculated at the ratio of all your credit cards.
For example: if you have 3 credit cards with $1,000 credit limits and 2 of the cards have a $0 balance and one has a $500 balance your debt to credit ratio is $500/$3,000 or 16.6%. If you close one of the $0 balance cards, you now have a ratio of $500/$2,000 or 25%. Having a higher debt to credit ratio, will also lower your score.
I would recommend that you put a tank of gas or a grocery purchase on the unused cards at least once a year, as some will impose a fee, or close your accounts for inactivity.
Leave a Reply
You must be logged in to post a comment.
