3 Signs It’s a Bad Time to Cancel Your Credit Card
Understanding the Risks of Cancelling Your Credit Card
Canceling a credit card can lead to unexpected financial consequences. Here are three signs suggesting it's a bad time to make that decision.
Sign 1: Your Credit Score May Drop
If your credit utilization ratio is high, canceling your card can increase overall debt utilization and negatively impact your credit score.
Sign 2: Upcoming Large Purchases
Planning a significant purchase? Consider the benefits of keeping your credit card open to take advantage of rewards or promotional financing offers.
Sign 3: Limited Credit Options
If you have few credit accounts, canceling a card might leave you vulnerable to low credit availability, making future borrowing more challenging.
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.