I am starting to work my way out of debt and want to end up at a point where everything gets paid for in cash. My wife and I already own a house, have 2 vehicles that should last us a long time and have college. I understand cancelling credit cards will hurt my credit score, but at this point I have to wonder what it matters. Not even having the credit card to use seems like a better idea than a high as possible credit score at this point.

Am I wrong? If so, why am I wrong?

I should add, we both currently have good credit scores.

What's your score? When is the next time you'll need to get your credit ran by someone?

Off the top of my head I think we were both around 700 a while ago. We have no reason to have our credit checked by lenders in the future.

If you keep your credit cards and don't use them, it should help your credit score a little.

You don't know when you are going to need credit in an emergency.

If keeping them doesn't cost you anything, there is no benefit to getting rid of them and a possible benefit to keeping them.

What is a 'hot toy credit score'?

Typo, I meant as high as possible credit score.

I'm kind of at a loss as to how you know that you both have good credit scores, but you haven't checked them in a while.  That and a 700 credit score is not something to write home about.  It's not bad, but it's not great.

One thing you're overlooking is the average age of your lines of credit.  If you go out and close a credit card or two and they're older accounts, it could negatively impact your credit score.

Now you say that you have no reason to have your credit run, but what happens if one car or the other is totaled and you need to get a replacement vehicle?  If you have sufficient cash to buy one outright, it's not a big deal...but if you would need a line of credit to purchase one, that's something to think about.

You maintain good credit not only for planned expenses (ex. Home purchase), but unforeseen things that might pop-up.

850

I'm not sure why you'd want to pay cash for everything, unless it's personal preference.  Lots of deals to be had online that I wouldn't pay for with anything but a credit card.  Shop for a card that gives the rewards that benefit you the most.  I have 0 debt (including house) and run everything through by Costco Visa that is set to autopay the balance each month.  If I traveled more, I'd switch to a card with air miles.  

Like one of the other posters said, credit age is a good part of your score.  Maybe you don't plan on ever getting a loan for a house or car in the future, but a good score will give you the best deals on rewards credit cards.  I don't focus on my credit score, but I make sure not to do anything to negatively impact it (i.e. close credit cards)

You don’t have to use them. Canceling them will not do you any good it will only hurt. Leave open. Don’t use them.  

But it why wouldn’t you use them? I am up to $500 in credit card points over the past 6months. That’s like two free pistols a year or caseS of ammo. 

I havent paid interest in years. There is no reason not to use your card. If you have the cash. Charge the card then go home and make a payment. It’s pretty simple. 

If the cards are NO YEARLY FEE credit cards I'd keep them and just freeze them so no unauthorized use or abuse.

If the cards have any yearly fee, tell your card provider as a long term client with good credit you want a NO ANNUAL FEE card...

Your credit score is very important in modern life (right or wrong - it just is...)  

A good score can determine what kind of job or security clearance or promotion, if you get a mortgage approval or can rent a house or apartment, and you will need it down the road in life.  House or Car later...

Just keep what you have.  Pay Off the cards and "freeze them" with your card holder (keep them active but explain due to Equa-Farts Mess Up you are concerned about unauthorized useage)

This.  

No Annual Fee Credit Cards (X3)

I get 3% cash back on all Fuel, and All Food & 1% back on everything else.  Plus I get free extended warranty and purchase protection at no cost.

Charge it and pay it off that week = never a problem...   I keep a Buffer Account with $ X in it.   After I purchase on card, I online transfer same amount over and I'm operating on a CASH basis, but have Credit card Benefits and Protections...   WIN & WIN & WIN...

That money adds up quickly, plus BOA gives me an extra 10% on my cash back 'bonus' if I e-deposit the cash back to my account.

I get cheaper insurance for having a good score...

Wife and I have no credit cards. Owe nothing excellent a mortgage that we got in 2016. We should have the house paid off in 2021. All three kids college funds are fully funded.

Fuck credit cards.

that's a huge contribution to the OPs specific questions.  huge.  immense.

first, clowns in GD; now, clowns in tech forums.

ar-jedi

doubled.

keep your credit cards, for several reasons.

1) emergencies.
2) rewards.
3) car rentals
4) airline tickets
5) credit score continuity

ps
you may not care about your credit score, but your auto insurance company does.  
more and more these days, your auto premiums are based off your credit score along with your driving history.
drivers with higher credit scores are statistically less likely to file a claim and less likely to be in an accident.
some states are working on prohibiting this practice, but it is what it is.

ar-jedi

There are many reasons to maintain a good credit score.
Most jobs that pay well and have any degree of responsibility assigned to them check credit scores. Insurance companies check credit scores, hurricane comes along and breaks it off in your ass you will need credit to rebuild.

There is no reason NOT to have a credit card or two, unless you or your wife have uncontrollable addictions to spending money you don't have. In which case you have bigger concerns.

The vehicles you have will wear out "a long time" isn't forever.

700 is good enough to get you a high interest loan somewhere and that's all , you might be in the upper 40% or so of borrowers.

There just isn't any good reason to let your credit score slide, no matter what Dave Ramsey says.

Can I ask why you say that? I always considered 700ish being a good score. I have a 739 and among my age-group (25 years old) none of my friends have anything even remotely close.

before you go worrying or high-fiving, keep in mind that there are a dozen or so different "credit score models".  
they are all calculated differently, and they have different minimums and maximums, and so on.

you can NOT directly compare two credit scores unless you KNOW they are using the same scoring model, right down to the version number of the scoring model.

and even those models change over time, or the reporting of the model may change over time.
example below from my PenFed account.
so use caution, sometimes apples != oranges.

ar-jedi

Not sure if this was mentioned yet, but some employers run credit checks.  Especially those if any type of security clearance is ever needed.  Or so I'm told.

Thanks for the info! The model I am using is "FICO Score 5".

FICO Score 5 is only used by mortgage lenders.

see, for example,
http://www.myfico.com/credit-education/credit-score-versions/

To answer the titled question:
You should never have started worrying about your credit score.  All you have to do is keep your promises to the lenders (i.e. make your payments on time in accordance with the terms and conditions you agreed to) and your credit score takes care of itself.  
I have never done anything specifically to increase my credit score, I just use credit to my advantage and make sure to keep up on payments like I promised.  Using it to MY advantage means avoiding penalties and unnecessary interest.  It also means using leverage where appropriate, such as buying a house when it was to my overall advantage to pay the financing costs vs. renting.
I have had a score in the 790s-800s (depending on model and specific life events) since before I finished college many moons ago.

Someone brought up needing credit in an emergency - I never thought I could come close to maxing out my card limits, in 2016 my house flooded (no flood insurance because I was not in a flood zone).  I used my credit cards to rebuild, put the down payment on my wife's replacement vehicle (until car insurance paid out), etc.  I never let the balance be charged any interest, I paid it all off as I needed to.  I had the cash, but my credit cards were essentially a 30-60 day FREE loan in a time of uncertainty.  Credit was very valuable at that moment.

If your not borrowing money it has limited good for you.  I don't have a credit card or mortgage and Wells Fargo seemed quite interested in giving me a 1.2 million dollar loan to open a dental office with zero down.  The deal didnt work out but I expected with no credit to get crap and it wasn't a problem.  The stats are true you spend more with a credit card so to say they are harmless is funny.  We would spend 300 a month at sonic on drinks if we weren't back on cash.  If you want to be different you have to live different.  Since 7/10 people can't write a $500 check I alway expect 7/10 responses to be negative when this comes up.

You have to weigh the pros and cons of credit cards and credit in general.

As people have mentioned credit scores can be pulled to determine insurance rates, allow you to rent a car, rent a apartment, and ive even heard of employers pulling it. Credit cards themselves are not bad if you stay on a budget and pay them offer, ive used a credit card for over a decade now and never once paid interest, yet i get 1% back on everything, its not a lot but its nice knowing everything is 1% cheaper when I shop.

With that said if you have had trouble with taking out loans, running up credit card debt, etc... then for you the cons out weigh the pros and in that case I would cancel them as they damage they do is  far worse than not being able to rent your dream apartment or having to pay a little extra on insurance.