A sign at my local credit union in Boise made me question a basic rule

I was there last Friday to ask about a car loan, and right on the counter was a pamphlet that said, 'Closing old cards can hurt your score more than you think.' I've always heard you should close accounts you don't use to keep things simple. But their handout argued that the age and total credit limit of those old accounts are a big help, even if you don't touch them. Which side of this do you find works better in real life?

4 comments

4 Comments

wesley_jones3d ago

That pamphlet's right about credit age, but nobody mentions the fraud risk of leaving dormant accounts open.

wade8713d ago

Angela's story about that weird small charge is exactly why I'm paranoid. I check my statements every single week now, no matter what. Letting an account sit for two years seems like asking for trouble.

angela5873d ago

Ever wonder if checking your old statements once a month is enough? I had a card I never used get a weird small charge last year, and it was a pain to sort out. Now I just close anything I haven't touched in over two years, my score barely budged. What's your cutoff for keeping an account open?

max_torres443d ago

My buddy had a card he forgot about for three years, then got hit with an annual fee that tanked his score. He closes anything unused after 18 months now.