Was it not a good thing that they could get out of debt by paying off those old credit cards, and close them out so that they would not have to worry about those bills ever again? Actually, paying off your credit cards is a good thing, and it will improve your credit score. But cancelling old credit cards and closing those accounts will not.

Should I keep my old credit cards, even if I'm not going to use them anymore? Having old accounts is a good thing, even if they are inactive. Perhaps you feel that having so many credit cards is not healthy and will tempt you to spend money that you don't have.

If this is the case, it would be wiser for you to pay off and cancel your newer credit cards. That way you will still have the cards that provide proof of your lengthy credit history, and you do not have the temptation to get into debt that you cannot escape. Either way, having old accounts open will help your credit score to stay at a high level.

If I close my old accounts, won't it repair the negative records on my credit report? It does not really matter whether you pay off, close out, and forget all about your old credit cards, you are still going to have those negative records, such as late payments, on your credit report. Why?

Those mistakes can stay on your report for up to ten years, and honestly, only time will eventually erase them. It is just better not to make those kind of mistakes in the first place, because closing the accounts that you paid late on will not make those mistakes go away.

Why is it a good thing to keep my old credit cards around? Having newer credit cards is beneficial because they may have better interest rates. In a way you have a chance to start over at a smaller interest rate without suffering the consequences, like increased interest rates, of the late payments you have made on your old credit cards.

But what about the old ones? Honestly, they can be more beneficial to you than the new credit cards, not necessarily when it comes to interest rates, but concerning your credit history. Having an old credit card attests to your long and healthy credit history, and gives you more esteem because you have experience with credit cards.

Cancelling these old credit accounts sort of erases the proof of your credit history, making you appear less experienced in the credit card realm, and therefore more likely to make late payments. This appearance will obviously lead to a low credit score when you really deserve a higher one.