Should You Close Unused Credit Cards? A Comprehensive Guide to the Impact on Your Credit Score
Tuesday, 9 April 2024, 12:30
Is Now a Good Time to Close Your Unused Credit Cards?
Closing a credit card frees up space in your wallet, but it can have unintended consequences for your credit score. Find out what you need to know.
Why Keep Unused Credit Cards?
- Impact on credit utilization ratio: Closing a credit card may increase your credit utilization ratio, potentially lowering your credit score.
- Average account age: Closing old credit cards can reduce your average account age, impacting your credit score negatively.
Conclusion: It's generally recommended to keep unused credit cards open if they're not costing you high fees, to maintain a healthy credit score.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.