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Does canceling credit cards affect your credit score?

5 minutes read
  • Older credit cards are important
  • Alternatives to cancellation
  • Benefits of multiple credit cards

When canceling any credit card you should choose wisely; not all your credit cards will impact your credit score the same way. This does not mean you should not cancel any credit card, but when doing so you should be aware of the following factors.

Older credits are important

When canceling a credit card, always keep in mind that older credits have a longer payment history, which is valuable for issuers when evaluating your profile. If you were thinking of canceling older credits you should be aware that the age of your account is also important when building credit. Instead you should lower your balance and keep those old treasures active.

Alternatives to canceling

If not cancel, then what? Issuers have many credit card options to offer, so when thinking of canceling any card notify your borrower and explore any other possible alternative that works best for you. Another option is to lower your expenses and keep the card active with just one or two automatic payments.

Benefits of multiple credit cards

Having several cards can increase your credit limit because you will have more credit overall if you add up your different credit limits. This comes in handy when building your FICO score (commonly used for individual credit evaluation) as 30% of it is determined by the total debt. Credit utilization is a rate that determines the percentage of your utilized credit vs the available credit you have.


When you’re thinking of canceling a credit card, you should aim to cancel the newest credits and the ones with the lowest limit. You should also consider cancelling if you can no longer pay interests or if you are “graduating” from a secured card into an unsecured one. If not, you should consider trying to get better terms with your lender because each credit, if used appropriately, adds up and can increase your credit score.


Daniel Quiroz

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