Q. I’m 55, my house is paid and I have no debt. I have a large enough emergency fund and I’m comfortable with my investments. I’m considering canceling all my credit cards because I never use them. What do you think?
— Good credit

A. It’s great that you have no debt and that you don’t use your credit cards to get by.

But getting rid of your credit cards may have unintended consequences.

Jerry Lynch, a certified financial planner with JFL Total Wealth Management in Boonton, calls your idea “nuts.”

While you’re in a good credit position now, cancelling your cards will hurt your credit score,Lynch said.

Plus, what happens if your situation changes?

“Banks also generally do not lend you money when you need it. They lend it when you don’t need it,” Lynch said. “Having access to money is one of the most important things in any financial plan a person can have.”

He recommends you also have a home equity line of credit available to you — just in case.

“Understand I am not suggesting that you take on debt or do anything different. I am just saying you should have access to money without asking,” Lynch said. “Plan A never works. You need to have a plan B as well.”

Karin Price Mueller writes the Bamboozled column for The Star-Ledger and she’s the founder of NJMoneyHelp.com. Click here to sign up for the NJMoneyHelp.com weekly e-newsletter. Like NJMoneyHelp.com on Facebook and follow it on Twitter.

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