The age of your accounts -- and your credit history in general -- also factor into your credit score; and in this venue, older is definitely better. If you have older accounts which you don't use, it may not be wise to close them. Even if an account has a bad rating, if it's still being reported as open, the age of the credit line could be significantly aiding your score. Closing older accounts could make your history seem younger than it is, and that won't help your credit score; in fact, it may damage it.

So, paying off your charge balances every month is an excellent tactic with a number of benefits, but remember to keep a lid on your amount of credit use. Limit it to below 30% or less of your available credit if at all possible. Do your best to diversify your file with different types of accounts. And be mindful of the age of your overall credit history. Your credit score, and your wallet, will both benefit.