![]() ![]() A longer credit history is usually preferred as the lenders would be more willing to lend to a person who knows the rules of the credit market than to someone who has recently stepped into this arena. While determining your credit history, the credit bureaus not only consider your oldest and the newest credit card or loan accounts, but also the average age of all your other loan accounts combined. Among these, your unused credit card directly impacts the credit history or age and credit utilisation. Your credit score is generally affected by these 5 major factors- new credit, outstanding amount, credit mix, credit utilisation and the length of your credit history. How closing a credit card impacts your credit score? Let us understand how an unused credit card impacts your credit profile. However, this does not mean that you should never cancel your cards. Cancelling a credit card may hurt your credit score which is why many experts suggest leaving unused credit cards open. However, when it comes to personal finance, the seemingly practical option may not always be the right one. If you have not used one of your credit cards for quite some time, the thought of closing it must have crossed your mind. ![]()
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