Your old unused credit card might be
taking up space in your sock drawer, or even your wallet, but closing that
account is usually not a good idea.
People close credit cards for many reasons:
- They have trouble controlling their credit card spending
- They aren’t using the credit card often
- They don’t want to pay an annual fee
- They don't find the rewards beneficial
- They think that it gets rid of the debt (it doesn't)
- They had a bad experience with the
company they took personally
You should always try to keep your oldest credit card account open if possible. It
shows credit issuers that you are able to handle credit responsibly and will
only help to improve your credit score. Having a good credit
score will provide you with the best interest rates on mortgages, auto loans,
and give you access to the best new credit cards.