Some ways to use your card responsibly include:
- Making all your payments on time.
- Spending only what you can afford to pay back.
- Keeping your credit card balance low - ideally under 30% of your total credit limit.
- Paying your full credit card balance each month when you can.
Closing an account can make your credit scores temporarily drop as you lose the available credit limit on that account, which increases your total utilization rate (the amount of your total credit limit being used across all accounts).
Separately, the age of your accounts is factored into your credit score with longer payment histories bolstering your credit score. If you close an account that's been in good standing for many years, you may lower the average age of accounts in your report (which can ding your credit score).
Although your scores may decrease initially when you close an account, they typically rebound in a few months if you continue to make payments on your remaining accounts, assuming everything else in your credit history remains positive.
Note: This information is presented for general informational purposes only and does not constitute tax, legal or business advice.