Paying off a credit card is a great accomplishment, especially if you worked long and hard to do it. What now? Do you leave the card open or should you close it?
There are some advantages to closing a credit card you don't plan to use any more - like having one less credit card to manage. However, if you're thinking you'll get points added to your credit score for closing a card, you won't. On the flip side, closing a credit card - even a paid one - can hurt your credit score.
You should leave the credit card open if:- It's the only credit card with available credit
- It's your only credit card, period
- It's your oldest credit card
- The terms are better than those of your other cards
- Closing the card will raise your credit utilization to more than 30%
