The Secret to Boosting Your Credit Score: Keep Your Oldest Credit Card

Hey there, folks! I want to talk about something super important – your credit score. Now, I know not everyone's a fan of credit cards (cough cough Dave Ramsey) but we're going to break it down in plain English. So, here are some reasons that you could keep your credit cards over the long haul rather than cut them up.

Why Should You Care About Your Oldest Credit Card?

Okay, so picture this: You've got a credit card that you've had for a long time, and it doesn't charge you any annual fees. That's a good thing! Here's why:

1. Your Credit History Matters

Your credit history is like a report card for how you handle money. It's a big deal when it comes to your credit score, which is like a grade for how trustworthy you are with money. The length of your credit history makes up 15 percent of your credit score – that's a decent chunk!

2. Longer History, Better Score

Now, here's the cool part. The longer you've had your credit card, the better it is for this 15 percent part of your credit score. It's like proving to the credit score gods that you've been responsible with your money for a while.

3. It Adds to Your Credit Age

That old credit card also adds to something called your "credit age." This is just the average length of all your credit accounts. The older, the better! It tells lenders how experienced you are with handling credit.

What If You're Just Starting Out?

But what if you're just dipping your toes into the world of credit? Maybe you've only had a credit card for six months or a year. That's not much history, right? Well, here's the catch: it might not convince other lenders to trust you with their money.

The Power of a Longer Credit History

Now, let's say you've held onto that credit card for five or six years – that's like a credit history superhero! Lenders can see you've been at this money game for a while, and they feel safer lending to you.

Wrapping It Up

So, here's the deal, ya'll. Keeping your oldest credit card (if it doesn't charge an annual fee) can do wonders for your credit score. It shows you've got a solid history and can make you look like a trustworthy borrower to lenders.

So, next time someone tells you to close that old credit card, remember this hack – keep it alive, and watch your credit score thrive! It's like having a secret weapon in your financial arsenal.