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dlm2000

Cancelling credit cards & credit score

DLM2000-GW
10 years ago

I know the 'formulas' for determining credit scores are convoluted but understand a portion of it is based on length of credit history, amount owed vs amount of credit available. Our Fico has always been high and I'd like to keep it that way although we have no immediate plans to refinance, get a new mortgage or apply for a loan of any kind. Down the road, yes, but not imminent.

What I'm wondering about is the impact of cancelling a long held card (1998) with a high credit limit and no balance, in fact no use at all since 2009. I just received the replacement cards yesterday and am not sure if I should cancel or activate them even though we will not use this card. Short version of the story is they made a major error a while back (confused my name and ss# with another customer who had filed bankruptcy) and I had to jump through hoops to get that corrected. Fortunately it never made it to any credit agencies (TransUnion, Equifax, etc) but I have not used the card since. I'll show them! As if my small balances that I paid every month even mattered to them!!! At that time we applied for and were issued a new card with the bank we use. The credit limit is not as high, which poses no problem unless having less credit available will impact our score. Clear as mud?

So do I cancel this card or is it worth holding for whatever benefit it has to our credit score?

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