Should I Close Unused Credit Cards?
You're flipping through your wallet when you come across a credit card you've had forever, but also haven't used in ages. Rather than allow that card to occupy valuable real estate in your not-so-large wallet, you rush to cancel it. After all, what's the point of keeping an old credit card that no longer serves your needs?
The truth is that in some cases, it pays to close a credit card you never use. For example, if your card charges an annual fee, there's no sense in paying for something you don't benefit from. But as long as it won't cost you money, it often pays to keep old accounts open -- especially cards with a high credit limit. That's because hanging on to those credit cards can improve your FICO score, even if they're just sitting around collecting dust.
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Source: Fool.com
