How many credit cards do you have? How many do you use?

Most people, at various times throughout their lives, have more credit cards than they need. Most personal finance experts will advise you not to open too many cards, because there is a temptation to use them all and wind up deep in debt. However, contrary to popular opinion, cancelling a credit card is not a surefire way to solve your problem either.

When you cancel a credit card, it can have a negative impact on your credit score. That is because the amount of credit you have available to you, your total credit line, has a positive correlation to credit score.

Still, there are times when closing a credit card makes sense. Especially if it’s costing you money. This guide from J.D. Roth on his website, Get Rich Slowly, explains how.

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