Step #5: Don't ditch your accounts unless you have to

If you've paid off or are getting ready to pay off a slew of credit cards, you might be tempted to ignore the following advice, but we hope you don't.

Here it is: Do NOT close those accounts!

In the crazy credit score logic, canceling a credit card could hurt your score. On the contrary, old cards you don't use much any more (and even those with untapped credit) may actually help your score!

Instead of cancelling, simply cut up the card. (But if you have an account that you absolutely MUST cancel, be sure to use our sample credit card cancellation letter to do so.)

Next: Step #6: Negotiate your spotty records