Will Canceling a Credit Card Hurt Your Credit Score?
In the world of finances, minding your credit score can be tricky. Some seemingly benign actions, such as canceling an old credit card you never use, can actually end up hurting your credit score. Seems counterintuitive, doesn't it? After all, tidying up your finances feels like it should have a positive impact — or, in the very least, be somewhat innocuous. But that's simply not the case. Or, should we say, things aren't that simple.
While many folks opt to cut up under-used credit cards or stow them in desk drawers, far from temptation, others just want to cut ties completely. So, are there ways to cancel a credit card without damaging your credit score? Well, with the right preparation, you can cancel a card you no longer use, all while keeping your credit score intact.