California residents may choose to get rid of their credit cards after paying down an existing debt balance. However, that may not be a wise choice. By getting rid of a credit card, holders may harm their credit score. This is because they will now have less credit to use and may also reduce their credit mix. These are both key factors when calculating a credit score.

For those who have good credit, it may be possible to acquire a credit card that offers rewards points or other perks. These perks may include statement credits or the ability to transfer money to a bank account. It may also make it possible for an individual to collect gift cards or other items that can help reduce travel or household expenses. Credit cards may come with an introductory interest rate of 0 percent.

Ideally, an individual will keep any account that doesn’t carry an annual fee open for as long as possible. When using a credit card, consumers should be sure to keep the balance to 30 percent or less of the available credit limit. If possible, they should pay off the balance in full each month to avoid paying interest. Under no circumstances should a person apply for a credit card if it will lead to excessive spending.

Those who are struggling to repay their credit card debt may benefit from filing for bankruptcy protection. Doing so may allow a person to have some unsecured debts discharged in a short period of time. Filing also places at least a temporary halt to collection activities and creditor lawsuits.