Take a look at all the credit cards reporting on your credit report. Do you recognize them all? When I was 18 I signed up for a Lazarus Department Store credit card. Lazarus no longer exists; it was absorbed by Macy's. My Lazarus card became a Macy's card. The account has a long history, zero balance, and has always been on-time. I don't frequent Macy's, but it would be a good idea for me to use the card to keep it active. Use it for a purchase of something small, preferably on sale that I actually need. The same goes for my former Structure store card; it became ExpressMen, which I believe is now just Express. The card has a long history with a zero balance, it is a perfect account. There is even a jewelry card on my report from when I was 18. This ancient account probably exists because my high school sweetheart wanted to look at rings. I don't recall ever making a purchase there, but the account exists.
With lenders tightening their guidelines and cutting costs, now is a smart time to take inventory of the accounts on your credit report. Those department store cards you haven't used in ages could actually be propping up your credit scores due to how long you have had them. Low or zero balances are even better in terms of being a positive account.
Make sure any cards that are still active have your current billing address. Call the customer service number either on the back of your card or the one listed on your credit report to give the account a check-up. Do not close the account. This will in no way improve your credit score; there is nothing wrong with having department store cards that are well aged (ideally over seven years old). If the account has been closed by the creditor ask if they will reinstate the account with the original date, if not it isn't worth reactivating the account.
Take inventory of those forgotten department store cards, they may be a contributing factor to why your scores are good. You never want to lose positive accounts, in the big-picture you want to take care of anything that helps your scores.
Patrick Ritchie is the author of The Credit Road Map, which is available on Amazon.com, REALTOR.org and TheCreditRoadMap.com. He is a Real Estate Finance instructor in Phoenix, Arizona.
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