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Does canceling a credit card hurt your credit score?
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9th Dec 2009 by Daniel Cross, ChFC
Cancelling a credit card can actually hurt your credit score by way of how it is calculated. By eliminating that extra line of credit, you cut your debt to credit ratio and make the debt seem larger even though it hasn't changed. It's usually a good idea to keep at least one extra line of credit open, if only to boost your credit score but in the age of identity theft and security fraud, keeping track of multiple credit card accounts can prove more difficult than it's worth.
Cancelling a credit card can actually hurt your credit score by way of how it is calculated. By eliminating that extra line of credit, you cut your debt to credit ratio and make the debt seem larger even though it hasn't changed. It's usually a good idea to keep at least one extra line of credit open, if only to boost your credit score but in the age of identity theft and security fraud, keeping track of multiple credit card accounts can prove more difficult than it's worth.
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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
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4th Dec 2009 In USA
1 Answers | 201 Views
Subjects: credit score,