GOOD NEWS/BAD NEWS? Opening new credit cards AT REAIL STORES for discounts on the current purchase.

After whittling your credit card balance down to zero, closing the accountmay seem like the responsible (and liberating!) next step. “I think anyone with common sense would view that as being financially prudent, especially if that line of credit is a source of temptation for you,” says Curtis Arnold, founder of CardRatings.com, a website that evaluates credit cards. But Arnold warns that shutting down an account will affect two major components of your score – your credit history and your credit utilization ratio, which weighs the amount of credit you have against the amount you’re using. Instead of closing the account, set up the card to auto-pay one small bill (like your cell phone plan) and deduct the balance from your checking account each month. You won’t have to worry about maintaining the account, but you’ll reap the benefits of a low balance and a long-running history.  To learn more, check our our free credit guide.