I was told that canceling a credit card can hurt your credit. If I pay it off and cancel how does that hurt it? I mean some cards out there are sucky....|||You should never close any credit cards if you are carrying balances on other credit cards. About third of your score is based on the percentage of credit card debt to limit. When you close an account, you lower your overall limit, which raises your debt percentage. Carrying balances of more than 30% of your limit, hurts your score.
Another factor is that you don't want to close your oldest accounts. You will be loosing length of credit history. Closed accounts stay on your credit file for about 10 years, but they don't count as much in your score as an open one.
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