Which of the following is NOT a recommended way to build credit responsibly?

• A. Pay on time every month
• B. Close old accounts aggressively after opening new ones
• C. Monitor your credit reports for inaccuracies
• D. Keep credit utilization below 30% of limits

Answer: (B)

Building credit responsibly comes from actions that show you can manage borrowing over time. Paying on time creates a reliable payment history, which is the most influential factor in your score. Regularly monitoring credit reports helps you spot and fix errors or potential fraud that could drag your score down. Keeping balances low relative to your total credit limits, ideally under about 30%, shows you’re not relying too heavily on credit and helps your utilization look healthy.

Closing old accounts aggressively undermines these positive patterns. It shortens the length of your credit history, and a longer track record often helps your score. It also reduces your total available credit; if you carry balances, this can raise your overall utilization, which can lower your score. So while closing old accounts might seem convenient, it tends to hurt long-term credit building rather than help it.

An effective approach is to keep older cards open and active, using them occasionally if needed, while focusing on on-time payments and monitoring your reports.