I opened a low balance credit card for a furniture purchase. Had the card for a month and paid it off. Should I keep the card open or close it?

Whether to keep or close your low balance credit card depends on a few factors. Here are some considerations to help you make your decision: ### Advantages of Keeping the Card Open: 1. **Credit Score Impact**: Keeping the card can help maintain or improve your credit score. Length of credit history and credit utilization ratio are key factors in determining your score, and keeping the card open adds to your total available credit. 2. **Credit Utilization**: Having more available credit can lower your credit utilization ratio (the amount of credit being used compared to the total available credit). A lower ratio can positively impact your credit score. 3. **Potential Rewards**: If the card offers rewards, cashback, or other benefits, it could be beneficial to keep it for future purchases. ### Disadvantages of Keeping the Card Open: 1. **Annual Fees**: If the card comes with an annual fee that doesn't provide enough value, it might not be worth keeping. 2. **Temptation to Overspend**: Having more available credit can lead to overspending, which could potentially lead to financial trouble if you're not careful. 3. **Managing Multiple Cards**: If you already have several credit cards, keeping another one might complicate your financial management. ### When to Consider Closing the Card: - If it has an annual fee and you don’t plan to use it. - If you’re trying to simplify your finances and reduce the number of accounts you manage. - If it doesn’t have any benefits that you plan to use in the future. ### Conclusion: If you don’t incur annual fees and are mindful about managing your credit, it might be beneficial to keep the card open. However, if you feel you won't use it again and it doesn’t offer any significant benefits, closing it may be a reasonable option. Ultimately, it comes down to your financial habits and goals. If you choose to close it, consider doing so strategically (e.g., closing the card with the least favorable terms or most recent account opening).