[MBAtarga]

My understanding is that when you close/cancel a card - your credit takes a hit. "Logic" is that you are concerned about your debt level and don't want to be tempted. Years back wife and I learned this when we cancelled a few cards - mostly store specific cards that were no longer used/needed, and our credit took a hit - I think about 20 points - maybe more.

If the bank closes an inactive card - no such hit occurs.