One thing which is very important for your FICO score is called the credit to debt ratio. Credit debt ratio is calculated as follows:

-Divide total amount of the credit line, say $1000, by the amount that you still owe.  If you owe $500, then your debt to credit ratio would be 50%.

Credit companies like you more when you keep that ratio at 35% or less.  You can see why it would not be a good idea to close an account paying:

1. it also closes the story on the
2. It reduces the available credit increases and the debt ratio

What do you want to consider is how you will handle the account fee. If you can not use it, then do so, you are not obligated to outrageous to pay annual fees to have the card sitting in your wallet or at home.  Once you have paid several accounts, you can review your financial situation and decide if the closure of an account would be a good idea, after all, you do not want a lot of unused credit or as it may have a affect your ability to borrow for a house or a car loan, and it is difficult to keep track of multiple cards / accounts as well.

Understanding credit debt ratio can help you improve your credit score. You need to know what happens when closing credit card accounts and that affects how your FICO score as an important part out of debt and improve your credit rating.
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Christopher Wright, Financial Cancer Specialist

http://Blog.GoodCreditApproval.com

Tags: repair credit score, credit card apr, bad credit repair