Close a Credit-Card Account to Avoid Fees?

Closing credit-card accounts can lower your score because of the impact on your credit-utilization ratio, which is the total of your card balances divided by the credit limits on all of your cards. If you close cards you haven’t used in a while but don’t pay down the balances on your other cards, your score could drop because your total balance will account for a higher percentage of your overall credit limit.

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