| Your credit scores can be compared to your high | | | | your credit history. |
| school GPA and your credit reports can be compared | | | | Sometimes your credit card company may start |
| to your high school transcripts. Keep on reading to find | | | | charging an annual fee if you do not use a card, an |
| out what happens to your credit score if you close a | | | | inactivity fee. Your remedy against this is to charge a |
| card account. | | | | tank of gas a month and then pay it off when you get |
| In many cases it is not a good idea to close your old | | | | the bill so you do not have to pay any interest |
| credit card account just because you're not using it | | | | charges. You may also be able to rack up cash |
| anymore. | | | | rewards or rebates as well depending on your card |
| Your payment history and account length history are | | | | offer. |
| two important factors in your FICO credit scores. | | | | So keep your old card accounts open so you can |
| When you close an account, you are basically wiping | | | | show potential lenders that you are a good borrower |
| out your good payment history, shrinking your total | | | | and can handle money well and they will be more likely |
| available credit, and shortening your credit history which | | | | to approve you with a favorable interest rate. The |
| can all lower your credit score. | | | | older your accounts the better. Just like fine wine, they |
| You can compare this to erasing your freshman and | | | | get better with age. And hopefully some of your high |
| sophomore years of high school off your transcripts | | | | school friends do too. |
| which can lower your overall GPA. Although you | | | | Now you should have a better understanding of what |
| would probably like to erase some of those memories | | | | happens to your credit score if you close a card |
| from your mind anyways, you don't want to do it with | | | | account. |