Years ago I had a Fleet credit card that I used. When the APR got too high on that card I paid off the balance and stopped using the account... but I never closed it. Since then, Fleet merged with Bank of America. I recently got a letter from them telling me they have changed the terms of my Cardholder Agreement. The real significance here is that I've been reminded of this other card that has no balance on it. What's better for my credit rating... for me to close this account or leave it open but not use it? I think years ago someone told me that if you close an account that might be bad for your credit... but I'm worried that leaving one open without using it for so long might be harmful to my credit too.

— Ted Goldberg

Ted,

 

I am not sure what the best answer to this is.  It is generally recommended that an individual not run up credit card debt.  However if you are not using it and don't plan to use it than close it.  I do not think it will matter.

 

Now that you are married and if you think you may need to borrow for a house or other major need a good way to build a good credit rating would be to borrow some funds from a bank or credit card and pay that loan back over a period of a year on a regular basis.  One of the things that is looked at is the regularity and timeliness of paying off credit cards or loans.  A bank loan would carry lower interest than a credit card.  Unless things have changed if you have never borrowed and paid back a small loan it is harder to get larger loans like a mortgage.  The system sometimes seems like a catch 22. 

 

The other general recommendation is that you get your credit ratings from the services that keep them once a year and make sure there are no mistakes on them or correct them if there are errors.

 

Hope this is helpful

 

Sol Levy