Cancelling credit cards can be a tricky thing. Just paying off a balance can make your credit score go down, which doesn't make a lot of sense but then I don't make the rules. Closing an account can also be a little nervous making, especially today when credit is so tight. What if you have an emergency and you need those cards to pay for something completely unexpected? Not to mention closing an account can make your credit score go down, so if you pay off a big balance and close the account your score can drop dramatically.

All of this doesn't mean you shouldn't close your accounts, but it does mean you should time it carefully. If you have a big purchase coming up — car, house, etc — you should see if you can wait to close the accounts until after the purchase is completely finished. By this I don't mean get prequalified for your home then close the accounts as your credit score will most likely be pulled again right before closing (a new rule that is part of reg reform if I recall correctly) but wait until you have the keys and are walking away from either the car lot or the closing table.

You should be eligible for a yearly free credit report. You might want to pull this a couple of months after you close your accounts to make sure that the closing was reported for the proper reason. You definitely don't want your credit report to say your account was closed for a negative reason. If you find inaccurate information follow the directions that come with the credit report and let them know about the discrepancy.