Maybe you’ve been ordering too much stuff on Amazon or watching your bank account shrink after spring break travel.
When your spending spins out of control, one way to rejuvenate your finances is to go on a financial fast. But while chopping up your credit cards may feel cleansing, you might be surprised at what it could do to your credit score.
Here’s how to think about whether to cut them up, or simply cut back.
Cutting up your cards but not closing them
If you stop using your cards — whether you dice them up or put them in the freezer — but keep the credit accounts open, your score will go up, says John Ulzheimer, a credit expert who has worked for credit bureau Equifax and credit scoring company FICO.
“The primary reason you want to keep your card open is because your score benefits from the unused credit limit,” he says.
Credit scores are heavily influenced by how much of your available credit you use.
