Impact of Cutting Credit Cards

Your Credit Utilization Ratio (30% of your FICO score) is calculated by how much available credit you have in comparison to how much debt you are currently carrying. If you have cards with low balances and available credit on them, that raises your available credit to total debt ratio, thus increasing your score. Closing credit cards can also negatively impact the Credit History portion of your FICO score (15%). If you need to close out a credit card because you are too tempted to use it, make sure not to close the oldest one or the card with the highest limit.

Is your credit in the right place?

Learn More

Each person’s credit situation is unique. Results may vary, and makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

3 thoughts on “Impact of Cutting Credit Cards

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s