Credit Myths

• Some mortgage lenders and other professional financial consultants tell their clients to close some of their credit card accounts as a means of raising their credit score, according to Credit.com. This strategy presumably makes them more eligible for financial services such as home loans.
  
  

Problems

• Consumers with good credit histories wipe those histories out when they close the credit card accounts. Any loss of positive credit history will damage the overall credit rating. Cardholders will also fail to show regular utilization of rotating credit, and this failure harms the credit rating further.
  
  

Alternatives

• Keeping credit cards open and using them sparingly can have a better effect on a credit rating than closing them permanently. Credit.com recommends putting the odd small expense on a dormant card every few months, and then paying the bill in full on time to keep a positive flow of good credit history.