There are many misconceptions about FICO scores and, no, you don’t have to hold onto credit cards or drag out loan payoffs.
To be more specific, the ability to manage debt successfully is the gateway to saving on a home or auto loan. It can help you get an apartment or keep you fromIf you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST
But you don’t have to hold on to credit cards or drag out paying off a loan because you’re concerned that your good management of the account will be forgotten. However, your credit score may drop after closing an account if it results in your credit utilization rate increasing. The credit-scoring algorithm looks at the credit utilization ratio for individual active accounts as well as in total.
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