We are often led to believe that taking a pair of scissors and snipping that charge monster to shreds is a good thing. But don’t cut up those old cards so quickly. Your credit score takes into account credit history. Get rid of an old standby in your wallet and you could erase all those years you were an excellent bill payer.
Let’s say your credit limit is $5,000, and last month you charged $4,500. When the bill came around, you paid it off in full. Good, right? Wrong. Maxing out your credit card — even if you can afford to — only stands to hurt your credit score. Use just 30 percent of your credit card limit to boost your credit score.