One of the biggest credit pitfalls you might fall is closing accounts when they’re paid as agreed upon. Believe it or not, it isn’t good to close an account that’s already open and being paid as agreed.

For example, Jack has five cards, each with a $500 balance. However, only one is being used. Creditors will say, “Okay, he has $2,500 available, but he’s only using $500. That means his credit usage is good.” If Jack closes the four cards he isn’t using, creditors will say, “He has one card, and he owes $500. His credit usage stinks!”

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