{"id":18153,"date":"2020-07-14T20:00:00","date_gmt":"2020-07-14T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/how-cancelling-credit-card-affect-credit-score.html"},"modified":"2026-03-26T16:02:13","modified_gmt":"2026-03-26T08:02:13","slug":"how-cancelling-credit-card-affect-credit-score","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/debt-credit-score\/how-cancelling-credit-card-affect-credit-score.html","title":{"rendered":"How Cancelling Your Credit Card Can Affect Your Credit Score (Instead Of Helping It)"},"content":{"rendered":"\n

Closing or cancelling your credit card can negatively impact your credit score. There are several pros and cons you need to consider before doing it. Read this article to learn when to cancel your credit card and how you can do it the right way.<\/strong><\/p> \n

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You may have an old credit card that you don’t use anymore, or you could have signed up for way too many credit cards just because of the freebie that came with them. But in reality, you could be only using one main credit card for all your transactions.<\/p> \n

As a knee-jerk reaction, you call your banks to cancel the other credit cards that are seemingly of no use to you anymore. Besides, it\u2019s kinda like spring cleaning your finances, isn\u2019t it?<\/p> \n

Except for the fact that\u2026 it isn\u2019t<\/em>. Cancelling or closing a credit card can actually have a serious impact on your financial health, and we\u2019ll explain in just a second.<\/p> \n

Does closing a credit card hurt your credit score?<\/h2> \n

There are multiple pros and cons of closing a credit card, but just to level with you, we\u2019ll tell you that closing a credit card will easily tank your credit score – and that\u2019s the biggest disadvantage you\u2019ll get when you cancel your card<\/strong>. Before we explain how that works, allow us to first explain what \u2018credit score<\/a>\u2019 means for the benefit of those who aren\u2019t aware.<\/p> \n

What\u2019s a credit score?<\/strong> In a nutshell, it is a number between 300-850 which represents your creditworthiness and how likely you are to repay debt. These are the three most important digits of your life. Banks, companies, money lenders, investors, and even some potential mothers-in-law will check your credit score before deciding whether or not to have anything to do with you.<\/p> \n

A good credit score<\/a> shows that you\u2019re trustworthy when it comes to money, so it\u2019ll be easy for you to get financing help when you need it. Likewise, a poor credit score will raise red flags and have institutions turn away from you.<\/p> \n

Your credit score is determined by 5 factors:<\/p> \n