<p>Although it is believed that having too many credit cards can have an adverse effect on a credit score, closing these lines of credit will severely dent your credit score. The credit rating formula looks at the difference between the amount of credit a person has and the amount being used, so closing one or more accounts will reduce your total available credit. And the lower the percentage of available credit, the more the credit score will drop. The credit formula also factors in the length of time credit accounts have been open, so closing an account with several years of history is another avoidable credit mistake.</p>
<p>Also , keep in mind that closing an account completely gets rid of any credit HISTORY you had with that card/company. Make sure you see that I wrote HISTORY, because that is a major factor in your credit score as well.</p>
<p>But don't keep paying an annual fee for a card you don't use. If the card has a fee, ask the company if they will drop the fee. If they won't, drop the card.</p>
<p>Actually, on the annual fee issue, I think it depends on what you get for the annual fee.</p>
<p>Oh, by the way, NEVER EVER EVER respond to ANY of the 158123951278941 letters you'll get in the mail. Shred them. RIGHT AWAY. Although I think you should open the AmEx ones because they have magnets in their soliciations and they come in surprisingly handy on the fridge. The reputable companies rarely ever send solicitations. If you need a credit card or want one, go to the company that offers it. This is to protect yourself. Applying online is the fastest. And probably the safest.</p>
<p>Though you should probably avoid Capital One and Chase. I find that AmEx, Citi and Discover are probably the most honest, generous and consumer-friendly. Not to mention they offer the most rewards. Although I don't know how honest a credit card company can be.</p>