Having open but inactive credit cards indeed influences your credit score calculation<\/strong>. Credit agencies take into account factors like:<\/p>\n

<\/span>Credit Mix<\/span><\/h3>\n

Lenders want to see you can handle different types of credit responsibly<\/strong>. This includes installment loans like mortgages, student loans as well as revolving credit like credit cards. Closing old credit cards negatively impacts credit mix<\/strong>.<\/p>\n

<\/span>Credit History<\/span><\/h3>\n

This refers to the length of your credit history. The longer your credit history based on the oldest credit card account, the better. Closing your old unused credit card can shorten the length of credit history<\/strong>.<\/p>\n

<\/span>Credit Utilization Ratio<\/span><\/h3>\n

This refers to the ratio between total credit card balances versus total available credit limit. Experts recommend maintaining credit utilization below 30%. Closing old cards lower available credit limit, increasing credit utilization ratio<\/strong>.<\/p>\n

Based on above factors, having open but inactive credit cards helps strengthen your credit score. Closing them may negatively impact your score.<\/p>\n

<\/span>When Can Closing Credit Cards Hurt Your Credit Score?<\/strong><\/span><\/h2>\n

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Closing old credit cards can damage your credit score if:<\/p>