Closing Unused Credit Cards and Impact on Your Credit Score

Closing unused credit cards can affect your credit score.

It can raise your credit utilization ratio, which is the amount of credit you use compared to your total credit limit.

Also, closing an old card shortens your credit history, which lenders check.

If your credit utilization goes above 30%, it may lower your score.

Before closing a card, consider the impact on these two things.

It's often better to keep older cards open and just use them a little bit to maintain your credit history.