Moneywise On Oneplace.com

Americans have an average of four credit cards. Do you really need that many? And how many is enough?Too often, we hang on to credit cards we no longer use…providing an unnecessary invitation to identity thieves to run up charges in our names. Canceling them is a good idea if done correctly.The Risks of Holding Unused Credit CardsMany of us hang on to credit cards we no longer use, but this can invite identity thieves to run up charges in your name. Canceling unused cards is a good idea, but it needs to be done correctly. Let’s explore why and how to do it.Why Closing a Credit Card Affects Your Credit ScoreOne common concern is whether closing a credit card will affect your credit score. The short answer is yes, it will drop a little. This drop happens because of the way credit scores are calculated.Algorithms used to calculate your score favor long-standing accounts, available credit, and a mix of account types (like credit cards, auto loans, and mortgages). Closing a credit card affects these factors, hence