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lexin1130

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Is it smart to cancel or close a credit line when i have paid off the entire balance?
I have paid off a few credit cards that i paid off and have $0 balances... is it a good idea to cancel them or should i leave them with $0 balance??

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It depends...If you're referring to your oldest TL, then definitely do not close them.  Keep them open, use them a couple of times a year, pay off in full.  If they're newer accounts, and the ones that will remain open are much older, then yes, close them.  Closing your oldest CC, will hurt your scores, because your AAoA will change.  The older your AAoA the higher your scores.  Also, it may affect your utilization, and hurt your scores.  If you close some accounts, and are using up the ones open, your utilization will go up to the roof, and your scores in the opposite direction.  Leaving the paid accounts open, with zero balances, will maintain a very low utilization and very high scores.  If you're afraid you're going to rack up charges again, just cut up the cards.  In a year, request a replacement card, use real quick for a tank of gas, cut it up again, pay off! 

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