Is it better to close out old revolving term credit accounts

Submitted by vinnie on Mon, 10/01/2007 - 16:26
Forums

Is it better to close out old revolving term credit accounts (that I don't use anymore) or leave them open. I want to raise my credit score.

Well I would say not to close old revolving accounts. Account history matters a lot when it comes to calculation of score.
The problem with your credit cards is that they are liabilities now for the company because you are not using them anymore. If you close these accounts it will affect your credit score a lot because the account history will vanish.

What you can do in this case is that keep using these cards for small necessities like a monthly dinner, a small purchases (low dollar) and pay the bill in full. This will help to maintain the card as well as your score.

Tue, 10/02/2007 - 04:53 Permalink