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5 credit card mistakes to avoid making

Credit Cards » 5 credit card mistakes to avoid making

Closing your account
Closing your account © Brian A Jackson/Shutterstock.com

Closing your account

The rationale: You've finally paid off a card with a monster interest rate and are determined to rid yourself of that relationship for good.

The rebuttal: While it may feel good to close your account and put the card in the shredder, doing so could actually have a negative impact on your credit score. By closing the account, you reduce your available credit line, which increases your ratio of debt-to-available-credit. Instead, keep the account open but keep the card out of sight. Ray suggests putting this "emergencies only" card in a safety deposit box at your bank or in your freezer at home.

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