Essential Financial Literacy for Adults in 2026

Do not close old accounts, even ones you hardly ever use. For instance, keep your very first charge card active by putting a little repeating charge on it, like a streaming membership, and pay it off monthly. Closing old accounts shortens your credit report and can increase your credit utilization. Integrated, this might lower your credit rating.

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Closing your earliest account minimizes your average account age, increases credit utilization and can decrease your rating when reported to the credit bureaus. It accounts for 10% of your FICO Score and is not factored into VantageScore at all. If you only have charge card, taking out a little personal loan might improve your score.

Be cautious of taking out brand-new credit simply for the sake of improving your credit. Concentrate on naturally blending up your credit gradually. Fast once the brand-new account is reported to the bureaus, you may see a modification within a billing cycle. See LendingTree's complete guide on how your credit rating is computed.

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The time it takes will depend on the private elements affecting it and the steps you take to change them. A credit line boost or becoming a licensed user can show results within a billing cycle.