Why You Shouldn't Close Credit Cards When Trying to Boost Your Score

If you're trying to improve your credit score, one tactic that might seem appealing is to close some of your credit cards. However, this strategy could cause more harm than good in the long run.

Why Closing Credit Cards Can Hurt Your Credit Score

When you close a credit card account, your credit utilization rate could increase, as you will have less credit available. High credit utilization is one of the factors that can weigh down your credit score, so it's a good idea to keep your credit cards open even if you're not using them regularly.

How Open Credit Cards Can Benefit Your Credit Score

On the other hand, having open credit cards that you're using responsibly can help demonstrate your creditworthiness to lenders. By showing that you can manage multiple credit accounts without falling into debt, you're more likely to be deemed a reliable borrower.

Strategies for Managing Your Credit Card Debt

If you're struggling with credit card debt or high interest rates, there are other strategies you can use to manage the situation without closing your accounts. These can include transferring balances to lower-interest credit cards, negotiating with creditors for better terms, and creating a budget to help you pay down your debt more efficiently.