Thinking of closing that old credit card you never use? Think again.
It might feel like you’re simplifying your finances, but it could actually hurt your credit score in two big ways:
1️⃣ Your credit history gets shorter, which lowers the average age of your accounts
2️⃣ Your total credit limit drops, increasing your credit utilization ratio
Both of these factors can cause your credit score to take a serious hit – even if you’ve never missed a payment!
Your credit score is a key to lower interest rates, better loan terms, and thousands of dollars in savings. Don’t let a simple mistake lock you out.
