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.
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