Does Cancelling a Credit Card Hurt Your Credit?

If your wallet is feeling overcrowded and you have a credit card you barely use, you might be considering cancelling it. But after asking around about how to cancel a credit card, you might have heard that cancelling a credit card can hurt your credit score.

Well, the hard truth is, they're right. Cancelling a credit card will very likely cause your credit score to decline. Understanding how credit bureaus calculate your credit score (at least to a basic degree) can help you determine how cancelling a credit card might hurt your credit score, and what you can do to mitigate the impact.

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Source: Fool.com