Closing Credit Card Accounts
Hi Terry
I enjoy listening to your advice on WGN-AM radio. I do have a Credit Score related question.
My wife and I have a few “extra” zero balance credit cards that we’ve had for years (nice lines of available credit that we haven’t needed to use). My wife wants to close these accounts (no annual fees). I interpret your radio comments as recommending keeping your accounts to maintain those available funds and the length of time the accounts have been alive.
Your advice – keep them or close them?
Thanks.
Terry Says
You definitely don’t want to close your longest-held cards. That can ding your credit score. And if you are not being charged an annual fee, no reason to close them. In fact, having them creates a lower “credit utilization” ratio, which actually helps your score!
Check your credit report to make sure nothing is being charged to them. And then just let them ride.
Here’s an interesting article about the pros and cons of closing those old card accounts.
