Don't close Credit Card

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Even if your card does come with an annual fee, cancelling the card should be your last option as there are other solutions you could consider. If you pay an annual fee, you could choose to downgrade your card by opting for one with no annual fee.

The longer your credit history, the better it is for your credit report. The age of accounts is generally accounted as the average age of accounts that you own. For example, if you own three credit cards with the ages—3,6, and 9 years the average age is (3+6+9)/3 which is 6 years now if you cancel the 9 year old card, the average age would naturally decrease to 4.5 years

There are still some tips which you can use while closing your credit card, which will not impact your credit score much.

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