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TPG reader Clayton tweeted me to ask:

@thepointsguy: Is there ever a reason to cancel a card with no annual fee? I have a Macy’s card I used in the past, but now sits in a drawer.”

The largest factor in having a high credit score is paying off your balances on time. But there are several other factors that play a part in your credit score as well, such as the average age of your accounts. So, if you’ve got a bunch of accounts you’ve had open for several years, that can actually help your score.

Main credit score factors
Main credit score factors

Clayton has a Macy’s card from years ago, but he just keeps it in a drawer. I would recommend keeping that account open. There’s no reason not to, as long as you don’t have any automated payments going onto that card that you might forget about and miss a payment. I don’t see a risk in keeping the account open in order and in good standing.

It’s also good idea to have different types of credit lines and not just regular credit cards. Most department stores have charge cards, so it’s a nice idea to have another kind credit line in the mix. So I say keep the Macy’s card open. Don’t use it, but monitor it just to make sure there are no fees or usage there shouldn’t be. Keeping no-annual-fee cards open is a great, easy way to increase the credit history factor of your credit score and thus boost your overall score.

Let me know if you have any other questions by messaging me on Facebook, Tweeting me or emailing me at info@thepointsguy.com.

Chase Freedom®

It's a stellar Cash Back card on its own, but when paired with the Chase Sapphire Reserve or Chase Sapphire Preferred, the Freedom's 5x Category Bonuses let you rack up Chase Ultimate Rewards Points, transferrable to partners or redeemable via the portal.

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More Things to Know
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
  • Unlimited 1% cash back on all other purchases — it's automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.49-24.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • Enjoy new 5% categories every 3 months
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee
Intro APR on Purchases
0% for 15 months
Regular APR
15.49% - 24.24% Variable
Annual Fee
$0
Balance Transfer Fee
5.00%
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.