Does Closing A Credit Card Affect Your Credit Score?

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Closing a credit card account can actually lower your credit score. How?

How does closing a credit card hurt your credit card? Let's break it down further.

Length Of Credit History

If you close one of your credit cards, it usually decreases this average age.

To maximize your credit scores, you’ll want your revolving utilization to be as low as possible, with 10% or lower being ideal for most people.

Credit Utilization Rate

If you only have one revolving account and you close that card, you’ve changed your credit mix considerably. This can hurt your score.

Credit Mix And New Inquiries

In most cases, it’s better to just keep the card and not use it instead of canceling it.

Is It Better To Cancel Unused Cards Or Keep Them?

When you close the card, your credit score might take a hit. How much it goes down depends on which of the credit factors it affected and by  how much.

What Happens To Your Credit When You Close A Card?