Credit – Close credit cards with caution

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Closing several credit card accounts won’t improve your credit score and could bring it down. Here’s why.

One factor credit scoring considers is how much of your total credit you use. To calculate that, credit scorers divide the total balance on your credit cards by the total credit limit available on those accounts. The results is a fraction – the lower, the better, Canceling cards can raise that number, which is bad for your credit score.

If you still want to cancel your unused cards, only cancel those with zero balance. And if you plan to buy a house or car soon, don’t close them until after you qualify for a loan.



All the best,



Timben