One would think that being diligent and closing those accounts that are no longer used would be wise.  After all, having easy access to too much credit isn't good.  Right? Wrong.

Today, our upside down world of credit scoring, has thrown financial responsibility and acumen out the window.

If you close inactive credit cards you WILL lower your credit score.

However, if you have alot of credit cards with high credit limits, you may want to closely review what is opened. 

First, the credit card that has been opened the longest, should be the credit card you use.  Closing that card will really damage you credit score.

The next oldest credit cards, review terms.  It might benefit you to call an have the credit limit lowered.  You may want to do this on any credit cards that have high credit limits.

Review your credit report & see if any of the old credit cards have stopped reporting (date last verified.)  If they have, and the date last verified is over 2 years old, you MAYBE safe in closing those accounts - however, do this slowly.  Try closing just one - then see if you get notified of any changes in terms on your other cards.  Or watch for credit grantors calling an inquirying about your payment. Or watch for a notice from your insurance notifying you that it has increased. 

Closing old accounts can be dangerous - dramatic changes in your financial position will lower your score.   

See our related article on Point Scores & How They Work.