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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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Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

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