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Question By
Riley902

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If I pay off credit card balance is it a good idea to cancel card?
I have a number of credit card, several approaching their limit. I've just got into the position to pay off the full amounts on the cards. Is it wise to cancel/close the account on a couple of the cards after paying in full?

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Top Contributor
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Probably not

Helpful to 1 out of 1 people

It is a good idea to keep as many accounts open as you can as this:


  1. Keeps Average Age of Accounts High
  2. Keeps Number of Currently Open Accounts High
  3. Lowers Credit Utilization % (by keeping your total credit limit high)

All of these factors will improve your credit score. On the other hand, closing these accounts will hurt it for the same reasons.

The only reason you might want to consider closin the accounts are if the cards have annual fees that you can't cover with the rewards they may offer or if you really just don't trust yourself to have open accounts for fear that, having lines of credit at your disposal, you might find your self in debt again.

Reply by
Riley902

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Excellent! Thank you very much for the advice. I will definitely take it!

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See if the lender(s) on credit cards you're keeping, will increase your credit limit equal to or greater than the card you wish to close. I recently did this, and my score dropped a negligible 3 points on Credit Karma.  

If you're signed up online with your cards, you can ask for a credit increase directly on the websites.

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