Sage mamas, I need some advice.
DH and I have finally set our sights on purchasing our first home. We are still a few years off from it, as DH has to finish school and we'd like to pay off some debt before getting serious about saving for a home. I have good credit. I have never made a late payment, ever on any account. I want to maintain a good score so that we can qualify for a good rate on a home loan in a few years. I have a credit card with a $10,500 limit with no current balance. I haven't used the card in over a year and never, ever want to use it ever again. I want to close the account, but have heard that closing accounts can ding your credit score. Is this so? Will it matter that I wouldn't need to use my credit for a few years? It is a long-ish standing account. I opened it around 2002, probably. I think the highest the balance ever got was probably around 7-8k about 5 years back. I have one other credit card that we use occasionally, which I plan to keep. Should I close it?