There is no clear-cut answer to this question, but there is no reason to close a credit card account that is in good standing. As to whether or not the closing of an old credit card account will affect your credit score, there are a few factors to consider:

- How long the account has been open: the older the account, the longer your credit history

- The monetary limit on the account: higher limits help with debt-to-credit ratio

- The type of credit: bank credit cards are rated higher than department store credit cards

- The number of accounts you have: the more accounts you have, the less likely closing one of them will negatively impact your credit score

Longer credit history and lower debt-to-available credit ratio tends to result in higher credit scores. However, your personal situation will determine whether you can cancel an old credit card without negatively influencing your credit score. For example, if you have 3 credit cards with a total credit limit of $50,000.00 and you owe $10,000.00, then canceling a card with a $3,000.00 limit should not negatively affect on your score. On the other hand, if you canceled a card with a $25,000.00 limit, your credit score may be lowered due to the higher debt-to-credit ratio. The goal is to try to keep a debt to credit ratio of less than 30% - 35%.

If you decide to close a credit card account, consider the following:

- Close an account you do not use, but which charges an annual fee.

- Close a department store account.

- Close an account that does not report your credit limit. You can get this information on your credit report from Experian, Equifax, or TransUnion.

- Close a newer account with a lower credit limit.