How Canceling Credit Cards Will Affect Your Credit Score

There are many reasons why you may want to cancel your credit cards, including an expensive annual fee, high interest rate, few benefits, infrequent usage, or you have transferred your balance to a new card.

These factors influence your credit score:

• The payment history (35% of the credit score)
• The number of credit accounts or amounts owed by you (30%)
• The length of your credit history (15%)
• Recent credit inquiries or the number of recently opened credit accounts (10%)

How Closing a Credit Card Can Hurt Your Credit Score

You might think that closing a credit card is a smart choice. However, closing a credit card can have a negative impact on a few credit score factors mentioned above.

• If you cancel a credit card, you will lose your available credit limit.
• Canceling a credit card can lower the average age of accounts on your credit report, especially if the credit account has been open for a long time.

Read more here: How Canceling Credit Cards Will Affect Your Credit Score