I get asked all the time should someone close his/her credit card?
Q: I own more than one credit cards and found difficulty when managing them all, especially remember their due date, should I close one with balance is zero?
A: No, you should NOT close any credit card even the balance is 0. 30% of your credit score (FICO or TransUnion score) is calculated base on the ratio between balance and credit limit. Maintaining a low balance while having a high credit limit (sum up from all of your individual credit card/line limit) give you a better FICO (i.e. at good level of > 700). Once you closing your credit card, you subtract its limit out of your total credit limits in bureau’s report and hurt your score seriously. I’ve learnt this the hard way.
Closing a credit card account with a high credit limit could hurt your credit score seriously, especially if you have high balances on other cards or loans. To make sure closing one card doesn’t impact your FICO score, pay off balances on all other cards.