2nd Common Misconception about Credit

2) I should close a Credit Card if I do not use it
This is another big misconception we hear all the time. If I don't use a credit card, store card, or charge card why would I not close it? While I agree you should be able to close it, and that it shouldn't hurt your score that isn't how it works.

By closing that account you do 2 things. You reduce your available credit, thereby raising your utilization anytime anyone examines your credit report. And you closed an account that had positive history on your report.

The best thing you can do is to "Sock Drawer" it and only use it 1-2 times a year to keep it active. Just put it in a safe, sock drawer, safe deposit box, somewhere safe and just don't use it except for that occasional purchase.