4. How will cancelling this card affect my credit score?
When organising your credit cards, also consider how cancelling a card will affect your credit score. Consider a situation if you have 2 credit cards. Card A has a balance of $0 and a credit card limit of $10,000. On the other hand, Card B has a balance of $1,000 and a credit card limit of $5,000.
If you cancel Card A, your credit card limit drops to $5000 although your outstanding balance of $1,000 remains the same. This means that you are only utilising 20% of your credit card limit. A decrease in the credit utilisation percentage may negatively impact your credit score.
Therefore, if you would like to cancel a card, start evaluating from the most recently acquired cards instead of credit cards with a history of long-time payments.

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Take note of how your credit card decisions affect your credit score!
Organising your cards and cancelling those that are not needed can take a load off your shoulder. As Marie Kondo would say, if it doesn’t spark joy, it’s probably time for it to go. One could do better with fewer annual payments and a lighter wallet to carry around.