Close Your Cards

Dave tells Tom that closing out credit cards with no debt on them only matters if you worship your FICO score.

QUESTION: Tom has 25 credit cards with no debt. Is it harmful to close them out?

ANSWER: It’s only harmful to close the accounts if you worship at the altar of the FICO score. Closing credit cards lowers your FICO score. The FICO is an I-love-debt score. You have to go into debt to get it, so if you’re not borrowing money, who cares how low it gets? Close them out!