The thought of having too many credit cards brings up the subject, I want to reduce them but will it help or hurt my credit scores.
Your credit score is determined, in part, by the variety of accounts you have, and whether you have eaten up a lot of your available credit by carrying balances. In other words, outstanding balances on multiple cards will affect your credit score. Wisely manage those balances and don't be in a hurry to close out accounts.
"Any major changes in your credit habits, including canceling cards, will throw up a red flag and impact your credit score," says Jones. "If you want to reduce the number of cards you carry, cancel one card and a few months later cancel another instead of canceling them all at once."
Having multiple lines of credit and low balances gives you a low credit utilization ratio, which is good for your credit score. Be sure to keep your balances low -- overall, and on each credit card you have. And use each card every so often so the credit card company doesn't cancel the account.
If you're struggling with debt and having too much available credit may lead to the temptation to spend, you might be better off canceling those credit cards. It's better to let your credit score take a hit for closing accounts than to face the consequences of charging too much debt and not being able to pay it off.
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