Does Canceling Your Credit Card Improve Credit Score?
Does canceling your credit card improve credit score? The answer to this question is NO. In truth, canceling your credit card would actually affect your credit score negatively. Credit card accounts for the past years are part of your credit card history. Even if you are not actively using your credit card, it is not advisable to cancel or close your credit card account.
Most credit card holders would just shred their account because 15% of their credit score is actually based on the length of your credit history. On top of that, when you have credit card accounts open and active, it could give you a much stronger credit ratio. A good credit ratio can be equivalent to a good credit standing. Credit ratio comprises of 30% of your total credit score.
If you want to improve your credit, you should keep your credit cards active, old or new. Even if you no longer use them, it would be a good thing for your credit score not to close them permanently. Just remember to use your credit cards wisely.
