Should I close my inactive credit card account?

Question

First, the background:

I currently have three store cards (two are inactive), a credit/debit card through my bank (doesn't appear on my credit report), a Mastercard, a USAA Amex card, and I have been an authorized user on a card of my parents' for like ten years. My credit score was 792 last year when I was approved for a loan for my condo (no late payments). I also have a student loan as well that I have been paying for six years (no late payments). I use my Mastercard and Amex card every month and pay both in full. I use my one active store card maybe eight months of the year and always pay it in full.

I have been considering closing one of my store accounts (not associated with Visa or MC, just a store card) b/c it is for a store I only go to when I am visiting family. I have heard that closing accounts will count against me, but I am not so sure about this one since it is already inactive. Should I close it or leave it open? I haven't used it in four years.

Answer 1

How old is this card?  If it is the oldest card you have, then keep it.  You lose the credit history if you close it.

If it's not that old, close it.

How big is the credit limit?  If it is low, then close it.  If it is large, keep it.  The higher limit will help any debt to credit ratio you might need in the future for say, a new car.

But, if you have no plans to take out a loan in the future, close it!

You already have a home.  That's the biggest purchase you'll ever make where scores and the like come in to play, other than a car loan.

I can't see where closing it will hurt anything if it's a low limit card.

Answer 2

Don't close it.