- Lower Risk Of Identity Theft
- Prevent Erroneous Fees & COS (which can happen and are usually a hassle to clean up)
- Makes it easier for the average person to review their credit reports for errors. (Also simplifies their overall financial picture making it easier to grasp)
- Eliminate the ability to frivolously re-enter debt.
- Prioritizes Emergency Funds
- Uses less resources (paper, energy, man-power)

As for too many trade lines keeping people from getting a loan, as you said it is possible. I too have seen it. However, for 95% of the USA, this simply isn’t a concern. The average person a) has a few thousand dollars of credit card debt and b) no plan to extinguish it quickly and c) no more than 5 or 6 cards. If these people start closing cards because they’re trying to “reduce the complexity of their lives” [as if it's complex to never use an available card] they’re going to hurt their score, raise their interest rates, and do more damage in the long run.

If the card has no annual fee, and the card itself sits in the bottom of a drawer somewhere (or even better cut up in the trash), what’s the harm? For Sherry, this isn’t necessarily good or bad advice – she’s doing fine. For the average person, this isn’t good advice at all. I say if it doesn’t have an annual fee, hold on to it.

Thank you so much for addressing this concern; it has been weighing heavy on my mind. I’m just one of those folks that does not like “unfinished” business & I see old credit cards that way…if I’m not using them & not receiving a monthly statement, I’m concerned that someone could potentially use an old card & I would never know it. Another reason to check my credit report frequently.

These old cards are also reminders of days gone by when I really did not have the money to spend so I would charge a new, much “needed” outfit!! Oh, the rationalization.

These cards are representative of a life I want to leave behind……

I really, really appreciate the advice all of you have given me…I will keep you posted as I attempt to scourge my life the “evil” credit cards.

((hugs to all of you!))

#2: I used to work in the credit industry, and I’m telling you some lenders see several open trade lines as a potential problem. As you said, it doesn’t necessarily make sense, but when did things have to make sense to be banking policy?

I probably should have made this more clear in my response, but by over-arching advice to Sherry was not to give her FICO score too much concern. In her situation, she is doing great, and if she wants to close out the unused store cards she used to grab a one-time discount, I say why not. Like GFish says above, there is the definite benefit of simplifying your life.

Only one of them acted like I was a total idiot for closing the card. But he works for a credit card company, what should I expect?

Don’t be intimidated by them. And if you aren’t going to borrow any more anyway, close them.

I even talked to the loan officer to make sure that if I wasn’t getting the best rate I’d explain that my FICO score may have dropped due to the closing of accounts, but my score was still plenty high to get the best rate available, despite closing several credit cards.

There is BENEFIT in closing an account – it helps simplify your life. It takes away a temptation of spending money you don’t have. It takes you one step further away from “playing with snakes.”

I know my situation isn’t going to be the same as everyone elses, but I’m providing one piece of evidence that it IS possible to close a bunch of your credit cards and still get great interest rates for mortgages.

If for some reason the bank sees your FICO score lower due to closing CC accounts, just talk to the loan officer about it. If they won’t get you the best rate, check out different banks. If you are truly credit-worthy, you’ll find a financial institution that will lend you the money for a mortgage.