From a financial planning perspective, it is indeed advisable not to have more credit cards than necessary. However, if you decide to close your unused credit cards, you may face negative consequences for your credit score in two ways. First, a significant portion of your credit score is determined by your credit utilization rate, which represents the percentage of your total available credit that you are currently using. If you carry a balance on certain cards and cancel others, your credit utilization rate will increase, leading to a reduction in your credit score. Second, the average age of your credit accounts is another factor that impacts your credit score, although its influence is not as substantial as credit utilization. If you close longstanding accounts and decrease the average age of your credit lines, your credit score will experience another decline.
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