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Paying off debt is a worthy goal. But if you later stop using a credit card, it can hurt your credit scores. That’s because credit utilization and length of credit history are key factors in the calculation of those scores, according to FICO. (Source: Black America Web, Melissa Lambarena)Say you were to close an older high-limit credit card after paying it off — or that you use the card so infrequently that the issuer ends up closing the account for you. Shutting down the account would not only decrease your amount of total available credit; you would also lose the card’s account history.

Array of credit cards


Another factor in your credit scores is credit mix — the combination of different kinds of credit accounts. A healthy credit mix might include a mortgage or car loans, for example, and also credit cards. If you want to learn about how having debt and credit cards can positively affect you, then you are definitely on the right track! Click the link below to learn more! 

Why Your Credit Cards May Deserve A Second Chance


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