Should I close out my credit cards after they are paid off or leave them open? Which option is best for my credit report?

We suggest that you don't close out credit cards with which you have a long, positive (timely payments) record, even though you may no longer regularly use them. Credit rating services love positive, sustained relationships, and it's good for your credit "history."

DO close out accounts with our credit card cancellation letter that you have not used much in the past or do not regularly use. Too many open lines of credit on many credit cards can hurt both your credit score and, consequently, your ability to borrow at competitive rates.

Want to read our answers to more of your questions? Check out our Q&A archives at the top of this page—click here.