Credit Card — Can I cancel?
Hi Terry, My question is - is it better to have a credit card account closed due to inactivity or should I make a purchase and keep it open? I really don't need to keep it open, I won't be using it. Does this affect my credit score? Thanks!
Terry Says
Your credit score is partly based on longevity of credit -- and that is one reason to keep a card open, using it sporadically and paying on time. But eventually you get to a point where it doesn't make sense to pay the annual fees. If you aren't planning to make a major credit purchase, and if you have other aspects of your credit to substantiate credit longevity (length of time at the same address, place of employment), and if you have another long-term card, you can go ahead an cancel the one you don't need anymore. I've done that myself recently.
