While paying off your credit card is a good habit, closing it altogether could be harmful.
"Your credit score will go down when you close your card," said Capalad. "If you pay off your credit card, I recommend you should keep it open unless you have a very good reason for not."
You might want to consider closing a card if you're being assessed an annual or monthly fee just to keep the card, or if you have too many credit cards open at the same time, she said.
After paying off all your balances, you should think about ways to increase your credit score.
Your payment history typically accounts for 35 percent of your score, according to Fair Isaac Corp., creator of the FICO credit score.
That means if you faithfully make your payments on time, you could help improve your score.
You should also keep an eye on your credit utilization — the amount of credit you're using compared to the amount that you have available — which also affects your credit score.
Credit scoring companies prefer that you use no more than 30 percent of the credit available to you, according to Experian. This is an indication that you have a handle on your debt and you're keeping your spending in check.
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