 TITLE: Does Closing an Account Hurt your Credit? CONTENT: When Does It Make Sense to Close a Credit Card?\n-----------------------------------------------\nAlthough closing your credit card account once it's paid off can cause a dip in scores, there are some instances where it still may make sense to do so. If you have more than one credit card and the account in question has an annual fee, it may not make good financial sense to continue paying for a card you no longer use.\nAnd, if you've struggled with credit card debt in the past and leaving the account open represents temptation to charge more than you can afford to repay, closing it may be the best decision. Although your scores may decrease initially when you close an account, they typically rebound in a few months if you continue to make your payments as agreed, assuming everything else in your credit history remains positive.\nIf you decide closing the account is the best option, contact your lender to notify them that you wish to close it and ask whether there are any outstanding charges or fees. Also make sure you won't lose any rewards you've earned before you close the account—or try to use them first. You will also need to notify any company with whom you have set up automatic charges to that account. Finally, you should cut up or shred the card before disposing of it. END