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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.
But what if you cancel two of those credit cards? The equation then works out to 1,000 divided by 3,000, pushing your credit utilization ratio up to 33 percent.
The second factor you should consider before canceling your credit card is your current credit utilization. Your credit utilization is one of the “most influential factors” that help calculate ...
If you cancel a card that you’ve had for a long time, you can shorten the length of your credit history. Accounting for 15% of your total score, credit age is important, but it has only a medium ...
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 ...
Credit card issuers may cancel your card because they need to reduce risk. A few months into the COVID-19 pandemic, credit card issuers closed accounts and reduced credit card limits for 70 ...
If you don’t want to keep or use the new credit card, and there are no other credit cards from the credit issuer to fit your needs, your last option should be to cancel the new credit card.
If you max out all of your credit cards, then yes, you can count on something bad happening to your credit score. There are a few situations where closing a credit card makes sense.