Just about anything you do with your money these days has the potential to affect your credit score. How much you spend, where you spend it and what you spend it on are all factors in your credit score. And if you've ever taken out a loan to buy a car or a home, or anything else for that matter, your credit score is a primary factor in determining how much interest you'll pay on your loan.

It's the unfortunate "rich get richer" scenario at work. If you have a good credit score you get better credit terms. Those with a higher credit score get to keep more of their money by virtue of lower interest costs.

One of the best ways to a higher credit score is to cut back on the number of credit cards you have. Here are three reasons why, from a credit score point of view, closing those credit card accounts is a smart move:

1. One of the key factors in how your credit score is calculated is how much debt you currently carry. For the purposes of that calculation it is assumed that your debt level is the total of all the credit limits on your credit cards. Why is this? Because credit card debt can be taken on nearly instantly. All it takes is a few major purchases - one big shopping spree - to max out your credit card.

   When it comes to calculating your credit score, you don't get any breaks. They will always assume you're about to go on a wild spending spree and red line your debt.

2. So what if it's not you who goes on that spending spree? What if one or more of your cards is lost or stolen?

   True, you aren't responsible for fraudulent purchases (not completely, though, philosophically speaking do you really believe this?) But if your one or more of your cards are stolen the real risk could be much more than the short term headaches. The real risk is loss of identity. The only reason identity theft exists at all is that a decent credit score has value.

   Every credit card account you close is one less door identity thieves can pry open to prey on your credit score.

3. Lastly I'll propose to you that having fewer credit cards boosts your credit score because it says something about your fiscal restraint and ability to shoulder financial responsibility. Holding as few as one single credit card account sends a clear message that you're in control of your personal finances.

   And that just makes sense, doesn't it? If you can't say no to a credit card offer, doesn't it telegraph something about you?

Your credit score is calculated using just about every conceivable factor into account. How many credit card accounts you have responsibility for carries a lot of weight in those calculations. If you want to boost your credit score, one of the best steps you can take is to close credit card accounts.