n a recent column about simplifying your financial life, I recommended consolidating accounts and getting rid of ones that you don’t use, especially when they have high fees.
A couple of readers wrote to me with credit score questions:
“I have several credit cards that I do not use,” wrote another. “I pay off my credit card balances every month and have a credit score around 825. I would like to close some of the unused accounts but am not sure how it would affect my credit score. What do you recommend?”
Yes, canceling a credit card can affect your credit score, but it’s complicated. And the possible benefits could outweigh the negatives, depending on your situation.
A credit score is made up of many different elements. Canceling a credit card can indeed adversely affect your credit score in several possible respects: your “credit utilization,” average age of your accounts and your credit mix.
