It might seem like a good idea to close a credit card that you rarely use, but doing so can hurt your credit scores.
Your credit utilization ratio is the percentage of available credit that you’re using. It’s one of the key factors affecting your credit scores.
If you close a credit card, you’ll have less available credit. That will cause your utilization ratio to rise, which can make your credit scores fall.
The average age of your accounts also impacts your credit scores. Closing an old account can negatively affect your credit.
You might need your credit card in the future to cover medical treatment, car repairs or other unforeseen expenses.
Use the credit card for occasional purchases or recurring expenses to keep the account active.
