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Closing your account
The rationale: You've finally paid off a card with a high 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.