Were you aware that positive credit history stays on your credit report forever?
Did you know that when you close an account, becomes inactive after 6 months (meaning it no longer contributes to your credit score) and the entire account, history and all, gets automatically deleted after 10 years?
So contrary to popular belief, as long as an account is positive, meaning there are no late payments associated with it, then you DON’T want to close the account.
Now, if you don’t use it once every 3 months or so, the account will become inactive and will no longer be a contributing factor to your credit scores, which is the whole purpose of not closing it in the first place. So, charge $20 bucks on it every so often and pay it off when the statement comes in. This will ensure that the creditor will not close it or stop reporting the activity to the credit bureaus, and it will continue to add to your positive credit history and reflect positively in your credit scores too!
Thirty-five percent (35%) of your credit score revolves around your payment history and your scores get very happy when they have a long-term account that is always paid on time!
On the other hand, if you are a charge-o-holic, maybe the best thing for you is to actually close the account if you don’t trust yourself enough to leave it the heck alone. If this sounds like you, go ahead and close it until you get everything paid off. Get your finances and spending habits under control first, and if closing an account takes away the temptation to charge, then by all means, get rid of it.
As I always tell my kids, “you can always start over tomorrow”.