Looking Beyond Your Credit Score
It is common to think that having a good credit score means having debt and utilizing your credit cards. This is likely why many people balk at the idea of canceling credit cards. If, however, you pay your bills on time, keep your balance low, and have generally managed your accounts responsibly, closing a credit card should not significantly impact your credit score.
For some people, having the access to multiple credit cards is too much temptation – if they have it, they will use it – these people may be better off down-the-line closing some of their credit cards. Although utilization rate may go down initially from closing a card, it will improve as you pay your debts.
It is tempting to only focus on your credit score, and you should be aware of how your actions will impact your score, but if you have too many credit cards or find them too tempting, in the long run, closing cards you don’t need may be beneficial.