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funlovin749

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How do I raise my credit score!
I have two or three credit cards that have a zero balance and would like to know if I cancel these cards will it help or hurt my credit score!

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It will hurt your score for 2 reasons:

1. The average age of your accounts will go down. The longer your accounts are open, the better your score will be.

2. Your debt to credit ratio will go up. Let's say you have 4 credit cards.

Card A has a $5,000 limit with a $1,000 balance

Card B has a $5,000 limit with a $2,000 balance

Card C has a $5,000 limit with a $0 balance

Card D has a $5,000 limit with a $0 balance.

Debt to Limit ratio = $3,000 / $20,000 or 15% ratio

If you cancel card C and D, your new Debt to Limit ratio = $3,000 / $10,000 or 30% ratio

One piece of your score is your debt to credit limit ratio, and the lower that ratio, the better your score.

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