My Parents Opened a Credit Card in My Name. They Won’t Let Me Close It.

I turned 18 (25 years ago) and my parents had me open a credit card in my name to start building credit. I never used it, but they did (responsibly, this isn't going in that direction). The card is still open with a balance of over $4,000 - they make the minimum payments to pay it off. I recently received a settlement from an accident and want to pay off the balance of that very first card and close it.

When I told my parents this, they said not to close it: Because it's the line of credit I've had for the longest time, it will hurt my credit score to close it. That makes zero sense to me, because once I pay it off, I have no intention of ever using it again, so I'd like it out of sight, out of mind, don't want to worry about anyone hacking it and using it, etc.

But, I know credit scores work in weird ways. They don't always reward you for making good financial moves. The thing about credit scores is they don't always reward you for making good financial moves. I've written before about how wonky the credit scoring system is - and how there are actually many different credit scores, not just one. But the bottom line is, your parents are right. There's a good chance that closing that 25-year-old credit card could lower your score.

Closing the old card would reduce your available credit (increasing utilization) and shorten your average account age, which could also potentially lower your score. But even if you do decide to close the card, yes, your score might drop, but it's relatively easy to bounce back if you focus on the other factors - basically, keep your utilization low and avoid opening too many new lines of credit at once.

Rebuilding your score does take time, though, so if you're planning to apply for a mortgage in the near future, I'd consider keeping that old card open and unused instead of closing it. Also, make sure your parents stop using it, too. Despite their best intentions, if they're not paying it off in full every month, they've been increasing your credit utilization this whole time, which might not be the best thing for your score.

There is one important exception to this advice: If you're tempted to use the card and might rack up debt, just close it. And a lower credit score, which is temporary and totally fixable, is far better than accumulating high-interest debt that could take years to pay off and cost you thousands of dollars.

Good financial habits are more important than a good credit score. I want to address one more thing, though: Have your parents been racking up credit card interest in your name this whole time? It sounds like they've been responsible with payments, but even with responsible use, minimum payments on credit cards mean interest has been accumulating month after month.

That interest compounds, and over time could have added hundreds or even thousands of dollars to what you are now ultimately paying. Also, since the card is in your name, you're legally liable for every charge and every penny of interest. I would look over your statements to understand exactly how much interest has accumulated over the years.

I'm sure they mean well, and this isn't about blame. But you do want to understand the true cost of this arrangement. Please keep questions short (<150 words), and don’t submit the same question to multiple columns. We are unable to edit or remove questions after publication. Use pseudonyms to maintain anonymity. Your submission may be used in other Slate advice columns and may be edited for publication.