<prompt> Human: Im asking because I have a card with a balance and I heard from my coworker that I should just cancel and start fresh with a new one. I heard that it does affect it somewhat, but how badly exactly? What happens to the balance after?  <response>: You should not close the card with a balance on it. If you close it at all, you should only do so after you have paid it in full. Realistically, you should stop using your card, pay off the balance in full, but do not close it unless you have an annual fee. If you were to close the account with a balance on it, you would still owe the balance, and you would have to read your card agreement to see if there is any sort of acceleration clause or other penalty in such a scenario. 