*Loan,banking and credit>>>credit line

Does paying off and closing a line of credit help your credit score more than paying it off alone?

I paid off a credit card today, but the customer service rep. I spoke to told me it wouldn't make a difference if I closed my line of credit, that paying it off is what helps credit, not closing lines of credit. Is that true? I would think having as few lines of credit open as possible would be to my benefit?

Two important parts of your credit score are credit history, and debt to credit ratio, so if the balance is paid off, it is usually not a good idea to close the account. The length of time you've had this card will show to someone checking your credit report, and if it adds to the time line, thats better for you.

The debt to credit ratio is the big thing, say you have 4 credit cards with $1000 limits on each. Even if the other 3 were maxed out, you'd still have $3000 debt to $4000 credit ratio, (or 75%) which looks a lot better then $3000 debt to $3000 credit ratio or (100%). I would keep the account open, and store the card in a safe, but not easily accessible spot.

It is true. It is better to have 2 to 4 credit cards open even if you are not using them. Now if you have more than 5 credit cards than you should go ahead and close it.