With a new year comes new years resolutions, and among the top is the decision to cut up some of your credit cards and maybe even close some of your credit card accounts completely. Obviously, a wallet full of credit cards can trigger a number of issues including increased exposure to identity theft, too much available credit for your income, too much utilization of current credit cards, lower back displacement from sitting on two large of a wallet, etc. So, what should you do to trim down that mountain of plastic in your wallet? Here are my recommendations for anyone dealing with an abundance of credit cards.

First, figure out which credit card is to be your primary spending card. Unfortunately, there's not any "expert method" for doing this - it really just comes down to your spending habits and your lifestyle. For me, my spending card is the Travelocity MasterCard because I get travel points for my spending - travel points that occasionally take me to my favorte vacation spot, the Magic Kingdom! Your personal spending card should be in your wallet.

Second, determine which credit card you’ve had for the longest period of time, your oldest credit card in other words. This credit card is important because it reports the longest credit history to the credit reporting agencies. Even if this card doesn't have the best rewards or the best interest rate, this credit card should remain alive with some level of activity because it reports that valuable history to the credit bureaus. This card, your oldest credit card, should be in your walet.

Third, do not cancel, but simply file away all of your other credit cards. Canceling a credit card is usually a no-no because it reduces your available credit, therefore increasing your utilization percentage of existing credit. Now that doesn't mean to go apply for new cards to help your utilization percentages. It simply means that you should stop using those credit cards while keeping them open.

I hope this helps - best of luck in reducing your credit card load this year!

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