Great question! I too have heard conflicting results regarding cancelling a card.

I've heard from multiple people in the financial industry that you don't want to cancel them too soon or all at once. One of the things that affects your credit score is your available credit.

The advice given to me when I recently started rebuilding my credit was to use the card each month for something - gas, a meal, any small expense - and then pay the balance in full. It's not like the money would be spent on anything else, or is money you would not have spent otherwise, and it keeps the card active. Basically that shows you not only have credit available, you use it and pay your balances in a timely way.

I have very little credit and am working toward purchasing a used car in the next six months to a year. I got a Target card in August with a $250 limit, and it was recently upped to $500 because I use the plan above to manage the card. I've also done the same with a Wal-Mart card, although my limit has not been increased. I'm waiting six months to request any increase in limit not automatically given.

I have heard that too Kelly. But I have also heard department stores are the worst to get.

Read Suze Ormans book "Women and Money." It answers a TON of questions and is so helpful.

Hi there,

The answer to your question was posted today on SavvySugar, here's the link to the post http://savvysugar.com/953813. I hope it helps!

Savvy