Credit cards and the things to learn
A large portion of your score depends on the percentage of debt you carry when compared to your maximum allowed limits. That means that if your credit limit is decreased, the same balance you had on a higher limit now uses up a larger percentage of your limit. Your credit score could consequently be hurt. The cancellation of an inactive card can also affect your credit score, since long standing credit cards reflect positively on your credit report. An estimated two thirds of consumers who own credit cards in this country have an outstanding balance.