What is the downside to canceling a credit card?

What is the downside to canceling a credit card?

The possible impact of canceling a card on your credit record is one of the biggest reasons you may not want to close old accounts down. You could hurt your credit utilization ratio: You could also damage your credit in another way by canceling an old credit account.17 Feb 2021

Does Cancelling a credit card hurt you?

A credit card can be canceled without harming your credit score⁠; just remember that paying down credit card balances first (not just the one you're canceling) is key. Closing a charge card won't affect your credit history (history is a factor in your overall credit score).

Why you should never close a credit card?

You shouldn't close a credit card that has been open for a long time or a card with a high credit limit. Closing the account could negatively affect your credit history and credit utilization, and in turn, lower your credit score.4 Jun 2019

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