Closing old accounts or credit cards

The common myth is to close your credit cards or old accounts to be able to get a good rate on a mortgage interest rate. The truth is that when you close older accounts they actually lower your scores.
Why because your account is aged and when you have an old account it counts much higher then a new account.
A percentage of your credit is based on how old your accounts are and when they fall off your account you now have lost something that contributed to your fico score.

So remember that closing old positive accounts can hurt your fico score, tell that to your mortgage agent next time he tells you to close those accounts.