Can i raise my credit score by closing inactive credit?
On One Hand: Closing Inactive Credit Decreases Credit ScoreAccording to Jeremy Simon at Fox Business, closing inactive credit will likely cause a decrease in your credit score. One important factor in determining your credit score is your credit utilization ratio–the ratio of your debt to your available credit; if you close inactive credit while you are in debt, your credit utilization ratio will subsequently increase. Furthermore, closing inactive credit with banking institutions where you have a long or positive history of repayment will eventually decrease your credit score because closed accounts and related information will be removed from your account seven years after the date of closure.On the Other: Closing Credit Improves Fiscal ResponsibilityAccording to Investopedia, closing certain types of inactive credit may be a good strategy for improving fiscal responsibility. If you have difficulty controlling your impulse purchases and you are in (or at risk of going into) debt, cl