Should you drop old credit cards?

Related articles

 Experts always tell you to keep all your old credit cards open. Even if you’re not using them. But is there a time you should close them?

Having a credit card for a long time helps your credit score. Old credit cards, even with no balance on them, increase the average age of your accounts, which helps your credit score.

Sara Rathner, a personal finance expert with NerdWallet, says if you close an old card it could ding your score by a couple of points. That’s mainly because it lowers your total available credit limit.

Rathner says in general experts recommend not spending more than 30% of your total credit limit in a billing cycle. Even less than 10% is ideal. So, if your credit limit is suddenly lowered but your spending remains the same, it’s that much easier to overspend.

read more……………….

Related Posts

Next Post

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

RECOMMENDED