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I have two cards I need to get rid of. I got the cards to help rebuild my credit and I feel I have begun to do that. The first one has a 550.00 limit, and the second one a credit limit of 780.00. Now my dilemma is that I have been using both the cards for over two years, and of course I have never been late or went over my limit. However, both these cards have an annual, and a monthly fee.
I recently have got another card, and have done great with for six month. The limit on this card is 1000.00, and has no annual fees. My question is how much will it affect my credit score if I cancel the previous two cards?
cancelling cards affect my score
Hi Naira,
Yes, canceling your credit cards can hurt your credit score negatively. When you close a card, the total available credit gets reduced, and the utilization increases. This can lower your credit score.
This is also going to hurt your credit in another way. The credit lines along with the credit history will drop off after some time of the cancellation of the cards. This happens more in case of older accounts. Thus, you should think twice before canceling your cards.
Thanks,
Aaron