Canceling a credit card can have a significant impact on your credit score, and it's a decision that should not be taken lightly.

While there are valid reasons to close a credit card account, such as high annual fees or the card no longer aligning with your financial goals, it's crucial to understand the potential consequences before taking action.

One of the primary factors that credit scoring models consider is your credit utilization ratio, which is the amount of credit you're using compared to the total amount of credit available to you.

When you close a credit card, you're reducing your total available credit, which can cause your credit utilization ratio to increase. - https://lendinghelpguide.com/blog/cancel-credit-card-impact/?unique_id_02r8s982

Understanding the Impact of Credit Card Cancellation on Your Credit Score