New Credit Card

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Bryce Befort

• July 19, 2022 17:02

Hello,

I am looking into getting a new credit card that offers 2% cash back. In doing so, I would not be using 2 of my other credit cards. My question is, should I cancel those other 2 credit cards or should I just leave the credit cards open and not use them ever? Will one or the other hurt my credit score more?

Thank you!

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• Official comment

  

  Victor D

  • July 19, 2022 21:05

  Hey Bryce! It sounds like you're doing a good job of building credit. 

  Here are a couple of resources that can help you understand the impact of closing a credit card account:

  • Pruning Your Wallet: When Is It a Good Idea to Cancel a Credit Card?
  • Does Closing Your Credit Card Hurt Your Credit Score?

  Closing out 2 of your credit card accounts could negatively impact your credit score because it lowers your available credit, which therefore increases how much of your available credit is being used. However, some credit card issuers will close a credit card account if it hasn't been used in a long time. If you decide to keep the cards open, it's a good idea to make a small monthly purchase on each one, and then pay it off, to keep the accounts active. Weighing the advantages and disadvantages of closing the cards should help you decide which way to to go.

  Finally, it sounds like you may already have your eye on a particular cash-back card, but in case it's useful, this article can help you compare it with some other popular options:

  Cash Back Credit Cards | Up to 5% Rewards (Compare 32 ...

  Best Regards,

  Victor

   

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