So i'll go ahead and weigh in here. i've had quite a journey with credit cards. sorry in advance for the long post
Spoiler
I have several credit cards. one that i've had since i was a teenager (this was before debit cards were really a thing. i'm an elder millennial :lol:). I still have that account and having an old credit card has helped my credit. i got another when i had my first real job. then i got several others for various larger purchases. computer for work, furniture, etc.. for most of my late 20s and early 30s i did freelance work and didn't always have steady money. so for years i pretty much paid the minimum. sometimes i used credit cards to get through a rough patch. for me i feel like they were a necessary evil. but i wouldn't take on credit card debt like that if i had it to do over again. it felt low stakes in my younger years. i had a much my nihilistic attitude about my finances back then. also the housing crisis scarred me from wanting to own a home.
it's taken years for me to pay off that debt. also a lot of pony collection downsizing. i figured if i made it a little painful i wouldn't rack up debt again :redface:. i never missed payments or anything like that but having that debt was very very stressful. not recommended! i still stress any time i spend any money even though i am in a more stable place in my career.
now when i use credit i pay it off in full. i still have multiple accounts so i can have a higher overall credit limit. i also like to have my own finances just for peace of mind. i'm finally buying a house so that was a big motivator for me to pay off my debt. having a mortgage scares me but i'm sick of paying rent.
i also use paypal for some online purchases. mostly for convenience and to have a middleman between my accounts and the online merchants. i'm not sure i would rely on paypal as a main bank account. some of the online only bank accounts freak me out. it may be old fashioned but i still like to have a building i can go to. also some of the online banks are just fintech companies and not real banks. all of the new financial tools are a bit much for me. sometimes i feel like i'm a few bad days away from just hiding cash in the wall :blink:
I can only speak to the credit scoring in the US but having a little debt and a higher credit line seems to help my credit score. i also have a car loan which has helped. the scoring formulas like when you have a combination of credit and fixed loans. in the US your credit can be checked for jobs, rental applications and of course mortgages and cars. i do find it frustrating that having a credit available is rewarded but if i dare use that credit there is a penalty. it's kind of a game. there's definitely a double standard for people who aren't rich and need some debt to get through a rough patch and those who use debt all the time but don't need to. re-paper billionaires using debt to avoid taxes :shocked: capitalism is strange.
i feel like debt is just a tool in the toolbox. in the US getting medical care, school, job training, can involve going into debt and credit score affects the interest rate. same for mortgages and car loans. Texas has no real mass transit so a car isn't optional. why do i live here again?
anyway, i think it depends on your situation. i second that closing your card will probably hurt your score. if you don't need to use credit for anything it's probably fine but 20 years seems like a good history. for privacy i'm not really sure if it makes much difference. so much is computerized. there is a lot of data floating around no matter what you do.
i wish i could get rid of my smartphone. it's another necessary evil in my life. i don't really like it all that much but i have to use one for work. i'm a web developer :) working in tech has made me more suspicious of it. but i also feel more aware of what really goes on with data. i'm more concerned about facial recognition, alexa and cameras everywhere than i am about companies having my phone number. i'm the weirdo who covers the webcam on her macbook. i recommend using an adblocker, 2 factor auth (with an authenticator app instead of SMS if possible) and random password generators for all your online accounts. it's more work to manage but much more secure in the long run.