11/02/2011 05:49 pm ET Updated Jan 02, 2012

12 Common Credit Card Questions Answered

Credit cards can be your best financial friend and your worst enemy. No matter how organized you are, staying within your limit, finding a card with a fair interest rate, and making payments is a monthly challenge. I get questions every day from readers about how to manage and navigate offers and keep your credit score sky-high. Here's a selection of my advice.

1. When Should I Cancel My Credit Card?

Q: Is it a good idea to cancel a credit card you are paying off instead of waiting until you pay it off entirely?

A: No, you need to keep a card open until the balance has been paid off completely. After your balance is zeroed out, call the issuer and ask for your card to be canceled with a note to the credit bureaus that the account was "closed at customer's request."

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