Credit Cards FAQ

Frequently Asked Questions about Credit Cards

Should I close credit cards that I do not use?

It seems logical to close a line of credit that you no longer intend to use. Unused accounts could be targeted by identity thieves, or they could be charging you unnecessary fees. But closing unused credit accounts may actually hurt your credit score. Since creditors prefer to see a longer credit history, closing old accounts could lower your credit score by causing your credit history to appear shorter. Your credit score also takes into account the percentage of available credit that you are utilizing. Creditors view you as less risky if you are using only a small percentage of your available credit. Closing accounts will reduce your overall amount of available credit, thus increasing your credit utilization, which may reduce your credit score. Closing several accounts at once could also reflect negatively on your credit report.

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