Hidden Costs of Closing a Credit Card

Hidden Costs of Closing a Credit Card

You may not realize it but having a credit card for a long time is important. So before you close that account consider this, when you close a credit card your credit utilization ratio increases and your credit score drops because credit history makes up 15 percent of your credit score older accounts work in your favor but if you’re paying high annual fees for a card you hardly use closing the account may be a good idea.