kmc and basic you're both kind of right.....closing an account isnt bad as long as you open one immediately afterwards....the point in closing an account after paying it off, is like doing your taxes every year, its simply like closing the books, now the point is to open a new one right away, so that your credit history doesnt have any gaps....I learned all this from a hasidic friend, who was living in a mansion in seagate (coney island), and explained he made his fortune off of using the credit system, via business' and real estate, investments and what not.