Closing Credit Card Accounts
In regards to closing a credit card account the simple advice would be: Don't Do It! Whether you have a high balance or no balance closing a credit card account is seldom a good idea. There are several reasons for this and they are:
Credit card companies report on your payment history. On-time payments are marked as a "1" on your detailed credit report and usually cover the previous two years. The more 1's you have the better your payment history will look. If you close a credit card or other credit account you are losing that on-time payment declaration.
Credit issuers (mortgage companies, banks, credit card companies, etc.) look at your debt utilization ratio. This is computed by dividing your balance by the credit you have available to you. The "magic line" for an acceptable debt utilization ratio is 30%. This counts as much for every card as it does overall. If you close a credit card account you are lowering the credit you have available and, consequently, raising your overall debt utilization ratio.
Creditors also look at length of credit ownership. The longer you have a credit card account open, the longer you've established yourself with that account. If you close old credit card accounts you are also striking them from future credit reports. This acts as a double whammy with #2.
In conclusion, it's always a good idea to keep those credit cards open. If you've managed to keep a low or zero balance, more power to you. You've established an excellent credit score and will be able to get loans for a house, car, etc. at very competitive rates and terms. If, however, you still aren't convinced that closing a credit card account is a bad idea then close newer accounts first. This will allow you to keep an ongoing credit history with established credit card accounts.