Canceling one of my credit cards

[mary1]

I am thinking of canceling one of my credit cards because of the high annual fee. Do you think this will ruin my credit history? I know it is not good to close credit cards. Please advise.

[trent]

This will depend on many things. For example if this was your first credit and you had the credit card for several years, then if you close it you will shorten your credit history significantly, which is bad for your credit score. Another thing that affects your credit score is the debt-to-credit ratio. If you close the card (assuming it's paid off) then your total available credit becomes less, which automatically increases your debt-to-credit ratio, and this might hurt your credit score.

[Canadian]

Trent makes a good point however having too many credit cards can also hurt your credit score.

[sunshine]

I am thinking of canceling one of my credit cards because of the high annual fee. Do you think this will ruin my credit hystory? I know it is not good to close credit cards. Please advise.


You can close it or just stop using it. If you are afraid it will be bad for your credit history just pay it off and on renewal just don't renew it...

[mary1]

You can close it or just stop using it. If you are afraid it will be bad for your credit history just pay it off and on renewal just don't renew it...

Thanks I think I may do that!