Dealing with credit cards is a tricky business, but unfortunately, it’s difficult to build good credit without using them. Developing good credit habits is all about know what will impact your credit in a good way, and what will cause it to take a hit.

So when it comes to the tricky subject of closing credit cards, here are some important dos and don’ts:

What Not to Do

• Don’t close all of your credit cards in an effort to eliminate the desire to use them. By closing them all, you’re putting yourself in a bad position in many ways. Firstly, you’re not giving yourself an option to use in an emergency. Secondly, you’ll definitely be damaging your credit score.
• Don’t close a credit card before you make a major purchase, like a car or a house. When you’re applying for a mortgage or an auto loan, you’ll want your credit score to be in great shape so you can take advantage of the best (lowest) rates possible. And that score will take a hit if you close a credit card right before applying.
• Don’t forget to use your open cards. Cards that sit around not getting used can also negatively impact your credit score. So try placing at least one small, monthly, recurring payment on each card and paying it off in full every month. This will keep your cards active without accumulating any debt.

What to Do

• Cancel cards that are costing you money. if your card has a really high interest rate or dumb miscellaneous fees, you should consider closing the card (when you don’t have a big purchase to make. You credit score may take a little hit, but saving money is better in many cases.
• When you do close a card (online or on the phone), make sure you follow up to make sure that it has indeed been cancelled. Here’s what US News recommends:
  

  Even if you cancel via telephone or online, follow up and ensure it’s cancelled by sending a certified letter to the customer service department and asking for a confirmation letter. It can take a while for your lender to process the change, so sit tight! Once you’re certain it’s closed, you can cut up your card.

• Watch your credit report and keep an eye out for errors. The credit bureaus can make mistakes, so make sure your credit score doesn’t take an unnecessary hit.

Check out more great credit card tips!

• The Biggest Credit Card Mistakes That People Make
• Top Ways to Improve Your Credit Score
• 3 Things You Didn’t Know About Your Credit Card