Essential Financial Literacy for Adults in 2026

Do not close old accounts, even ones you seldom utilize. Keep your first credit card active by putting a little recurring charge on it, like a streaming subscription, and pay it off each month. Closing old accounts reduces your credit rating and can increase your credit utilization. Integrated, this could lower your credit score.

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

Be cautious of taking out brand-new credit simply for the sake of improving your credit. Focus on organically blending up your credit in time. Fast once the new account is reported to the bureaus, you might see a change within a billing cycle. See LendingTree's complete guide on how your credit rating is determined.

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