Should I keep or cancel an old credit card account (in good Standing) that I never use anymore.?

Answer 1

Available credit is not debt.
Closing an old account will negatively impact your scores.

You will be losing history and you will be losing available utilization.

If you have open accounts that are around the age of that account and your total overall utilization is low and will remain low, you may not take a very hard hit if you close the account.

If most of your open accounts are fairly new and your total overall utilization is fairly high, you will probably take a pretty large hit on your scores if you close it.
It may also make your current creditors nervous to see your utilization shoot up. You might see one or more of them rate jack you for it, decrease your credit limits or possibly closing the account all together.

If you are not paying any annual fees on the card, it would be better for your scores if you leave it open. Then make small charges on it about every 6 months to keep it open and reporting.

If you pay a fee on it, you might close it if you are not planning on applying for any credit in the next 6 to 12 months.
If you do have high overall utilization on your other accounts, you may want to pay it down before closing the card.

Answer 2

I agree with Echo and Treadstone. Anytime that you close an account, when you get rid of that account, you get rid of that payment history and available credit. Chances are, it would be ironic that by cancelling the very credit card that built up your credit at one time will now hurt your credit. My suggestion would be to charge something small on it (no more than $20) and pay 1/2 of it just to show activity every month. That way, you're not paying outrageous interest, your card's still in good standing, and you're able to retain your credit

Answer 3

Definately cancel. It is a liability risk if someone gets hold of the number or steals your identity. Also your credit limit on the card is counted as a possible debt and can hurt you if you apply for any other type of credit. After you cancel the card you should check your credit report to make sure that it has been removed as a liability.

Answer 4

No - not necessarily.

"
Should I close old accounts to raise my score?

No. In fact, it might lower your score. First of all, any late payments associated with old accounts won’t disappear from your credit report if you close the account. Second, long established accounts show you have a longer history of managing credit, which is a good thing. And third, having available credit that you don’t use does not lower your score. You may have reasons other than your score to shut down old credit card accounts that you don’t use. But don’t do it just to get a better score." http://www.fico.org/HowScoreCountsInquiries.aspx#Closing

If you do decide to close the account, make sure it is noted that it was closed upon YOUR request.
http://finance.yahoo.com/education/banking/article/101793/Your_credit_report_What_lenders_look_atand_where_they_draw_the_lines

Answer 5

Keep it. It's good for your credit score. The bigger gap between your credit available and credit used the better. According to the credit scoring companies, you are a good risk. They also look at how long you have had your accounts so the longer the better. I hope this helps!

Answer 6

If you don't use it get rid of it. Someone may have the number stored or happen upon it and realize it's not being used and run up a huge balance before you know it, since you don't monitor it as you would your current card. If the card is left somewhere someone might find it and use it to steal your identity. Better safe than sorry.

Answer 7

Cancel it...you never know when temptation will come around. Also if you lose it, someone might screw you over.