Closing Credit Cards and Credit Score Impact

One common mistake home seekers make before applying for a mortgage is closing old credit card accounts thinking it looks cleaner.

Closing an account reduces your available revolving credit limit, which instantly increases your credit utilization ratio, and cuts short the average age of your credit accounts — both of which can cause your FICO score to drop 20 to 50 points right before pre-approval.

Instead, keep older zero-balance cards open and active with minimal occasional charges.