An Open Line of Credit Can Be Useful
You may wish you hadn't canceled that credit card if, say, you find yourself unemployed, or paying unexpected medical bills you can't afford. Also, a lengthy and positive credit history is valuable when you apply for home, auto or student loans.
An Open Credit Line Can Be Tempting
Having an open line of credit just sitting there can make you more likely to use it on something you don't need or can't afford. If you have a history of poor spending habits, or have had high credit balances in the past, keeping the credit line open can be a temptation you'll regret.
Bottom Line
Decide if you will need a long-term credit history in the future--if, say, you are planning on buying a home in the future. If so, keep the credit line open, although you can cut up the actual card if necessary. Otherwise, close the account.
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