Quote:
Originally Posted by elzar
Credit cards don't help your credit rating if you don't use them.
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That is absolutely false.
If you have a credit card you never use and close the account, you will actually hurt your credit. I know it sounds messed up, but here is why. About 30% of your credit score is made up of your capacity, or how much you owe/ how much credit is available. The lower the amount owed over the amount available the more points you get. By closing a credit card you are actually making the ratio higher, which gets you less points.
If anyone wants information about how your credit score is calculated let me know and I can give you more information.