If you’re thinking about canceling old and unused credit accounts, that could be a great idea. Especially the ones that are still charging you fees. But, before you just up and close your accounts, there are a few “don’ts” to consider.
You don’t want to cancel the oldest account on your report. This shows the beginning of your credit history and if you close it, your credit will look shorter than what it really is.
Another thing you don’t want to do is just throw away your old cards and think that the accounts will close automatically. You will actually have to contact your company to cancel the card.
Finally, avoid temptation to close several cards at once. Yes, it may be tempting, but it could look suspicious to creditors and may have a negative effect.