Originally Posted by DaniaBchGirl
Quite the contrary it helps increase your FICO score if you have AGED credit with low utilization (under 30%).
This is not really true. I used to work at a bank and one of the things I dealt with a lot was credit cards and loan approvals. Low utilization will hurt your score. Carrying a balance, while making minimum payments is what helps.
I worked for a VERY large bank and I was one of two people who had the job of calling "good" credit card holders who had written in to cancel their cards. By "good" customers I mean customers who carried a balance and payed the minimum payment. That is how the bank makes money. We could care less about the customer who charges $10,000, but then pays it off right away.
I would offer lower rates or other things to keep our "good" customers, but I HAD to cancel it if they really wanted to cancel it. Just call the card company and say you don't want any special offers, just cancel the card. If you tell them you are in the process of getting a mortgage and the loan officer said you have to cancel the card before you are approved then that will do the trick right away too.