It’s important, however, to note how your FICO credit score may change over time. Your credit score can fluctuate based on the number of cards you sign up for and how long you keep them. Here are the major factors that determine your FICO credit score:
Payment history: 35%Amounts owed: 30%Length of credit history: 15%Credit mix: 10%New credit: 10%
As you can see, the number of new accounts and the length of your credit history play a role in the health of your credit score. If you sign up for too many new accounts during a short period of time, your score can take a hit. Likewise, canceling your oldest cards will shorten your credit history and decrease your score. Because of the way your FICO score is calculated, one of the best moves you can make is to get a credit card you can keep for the long haul – maybe even forever. While you may want to get other credit cards throughout the years, this one “forever card” can serve as an anchor for your credit history. A card like this should come without an annual fee but with enough perks to make it worth holding onto. Here are five cards that could definitely be the “forever card” in your wallet: [This article was first published on The Simple Dollar in 2020. It was updated in March 2022.] Since this card comes without an annual fee, you can use it as frequently or infrequently as you want without worrying about ongoing costs. You can even convert your Freedom Flex rewards into Ultimate Rewards points if you also have a Chase Sapphire Preferred or Reserve card. This credit card is perfect for the long haul because it never charges an annual fee and offers quite a bit in terms of earning potential. You can earn unlimited rewards all year long if you want, or simply keep this card for emergencies. But you’ll never pay a penny for the privilege and your reward will never expire. What makes this offer good for the long haul is that this card comes without an annual fee and rewards cardholders for purchases they’ll be making for years to come.
