Mastering Financial Literacy for Adults for 2026

Don't close old accounts, even ones you rarely utilize. For example, keep your first charge card active by putting a little recurring charge on it, like a streaming subscription, and pay it off each month. Closing old accounts shortens your credit rating and can increase your credit usage. Integrated, this might lower your credit rating.

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Closing your earliest account lowers your typical account age, increases credit usage and can lower your rating when reported to the credit bureaus. It accounts for 10% of your FICO Score and is not factored into VantageScore at all.

Be careful of taking out brand-new credit simply for the sake of enhancing your credit. Focus on organically blending up your credit with time. Quick once the brand-new account is reported to the bureaus, you may see a modification within a billing cycle. See LendingTree's full guide on how your credit rating is calculated.

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The time it takes will depend on the individual aspects impacting it and the steps you take to alter them. A credit line increase or ending up being an authorized user can reveal results within a billing cycle.