Many Nigerians rush to close old bank accounts or loan accounts once they are done using them. It feels like tidying up. But when it comes to credit scores, closing old accounts can actually harm you.
At PebbleScore, we encourage users to understand how credit scoring works before making that decision.
Why old accounts matter
Credit scores measure more than repayment. One important factor is credit age, the length of time you have managed accounts responsibly. The older your accounts, the more reliable you look to lenders.
For example, if you’ve had a loan account for five years and always paid on time, that history shows stability. Closing the account erases that valuable record.
How keeping old accounts open helps
- Builds longer credit history. The longer your accounts stay open, the better your score reflects stability.
- Shows consistency. Lenders like to see ongoing, responsible use of credit.
- Adds to account mix. Different types of accounts like loans, credit cards, overdrafts can improve your profile when kept active.
See top tips for building a strong credit history.
Common myths about old accounts
Some believe that closing accounts improves their score by showing fewer debts. But in reality, old accounts do not count against you if they are settled or inactive. Instead, they contribute positively by providing experience.
When to close an account
Of course, not all accounts should remain open. If an account carries unnecessary fees, or if it encourages overspending, it may be wise to close it. The key is balancing financial discipline with credit-building benefits.
How PebbleScore helps you decide
We simplify your credit reports so you can see which accounts strengthen your history. Our platform shows you which actions like keeping an old account can improve your score over time.
Read how managing your credit score is key to financial freedom.
Final thoughts
Your financial past can work for you. Old accounts are not clutter, they are proof of reliability. By keeping them open, you extend your credit history and strengthen your score.
PebbleScore helps you track all these details from one place, giving you clarity and control over your financial future.