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Key takeaways. High-interest credit cards can significantly increase the cost of carrying a balance, with rates around 30% APR being particularly expensive.
If you close a credit card account with a leftover balance, your card issuer will still charge you the owed amount with interest until the full balance is paid off.
When you close a credit card account, you reduce your total available credit. This may increase your credit utilization ratio, which can decrease your credit score. Here’s an example:
Having multiple credit cards is good for your credit score, so consider keeping your high-interest account open while you look for a new card with lower interest or better credit card rewards ...
Credit utilization: Closing a credit card account can also impact your credit utilization ratio, or the amount of debt you have relative to the total amount of credit available to you. This factor ...
Closing a credit card account can also impact your credit utilization ratio if you have debt on other credit cards and revolving accounts. This factor makes up 30 percent of your FICO score, so ...
Some credit card issuers allow cardholders to cancel their credit card online or through the card issuer's mobile app. The account should show as closed on a credit report 30 to 45 days after ...
If you cancel a credit card, it could raise your credit utilization ratio by lowering the limit you're working with. For example, owing $3,000 on a $10,000 credit limit is fine for your credit score.