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Already I'm leaning toward closing the account and not opening another CC, period.
And when you need something like a car loan, your interest rate will be higher, meaning you'll pay more.
Finance companies judge the risk of making loans, if you cant show them that you'll responsible with your credit, i.e. having cards and not using them or paying them on time, your interest rate will be higher then had you had established accounts.
Your credit score is determined by how much you owe compared to how much you make among other things. Building good credit will come in handy if you want to finance a car, rent a home or eventually buy a home but having a lot of credit cards is not necessary. You should really only have one major credit card with a balance that is paid off. What the credit reporting agencies are looking for his how you pay your off your cards...the lowest amount or more than needed. It isn't a bad idea if you have self control to pay off your purchase over a period of a few months paying more than asked. That is what develops credit history. Not opening a card and paying if off right away and then close the account. Closing accounts hurts your credit score....after your debt is paid on a card put it away for emergencies or if you want to build more credit but only if you have self control,pay it off in a few months. When my parent's wanted to buy there first house they couldn't because they paid cash for everything. They actually had to buy something on credit and pay it off to establish their credit....good credit. Now that they are very well established, when they charge something it is paid in full the next month.
I just looked at my credit scores. I got an "average" rating for length of credit history because my oldest account was "only" 13 years old. Looking at the explanation provided with my report, it takes having an account that is at least 19 years old to get a good rating in this area. You might as well start getting your time in now. Just because you have the card doesn't mean you need to use it.
Your credit score will be hurt if you close your account now. Leave it open now that you have the card. Leave it open for a period of time. Closing it will put a ding in the credit rating. Also, repeat credit checks will put a ding in your credit score so you might want to minimize the amount of times you get your credit checked per year.
If there is no annual fee, I don't see any reason to close the account. Just keep the card in your wallet, if you see a legitimate bargain at that store, go ahead and charge it.
I *do* like to do the 90 days same as cash deals, free interest for a year, etc., *BUT* I do keep up with what's coming due when, and pay it off before the interest charges start.
To paraphrase Jefferson, credit is a dangerous servant and a terrible master - but keep an eye on your balances, never forget that when you charge something you are spending real money - and you'll be fine.
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