Q&A: Why you need a credit score

Dear Liz: I use a credit card for most of my shopping and pay the balance in full every month. The card was opened years ago as a business card, but the business has since been closed. My credit scores are high but my card isn’t listed on my credit reports. I believe that is because it’s a business card. Should this be of concern to me? My wife and I own our home outright and have no other debt.

Answer: Your scores should be fine as long as you have (and occasionally use) other credit cards that show up on your reports at the three major credit bureaus.

If you didn’t have other active credit accounts, eventually your credit reports would no longer generate credit scores. That could make it much more difficult and expensive to borrow money, rent an apartment, get a cellphone and, in most states, insure a home or a car.