 TITLE: How Much Credit Should I Use? CONTENT: Closing Credit Cards Can Increase Utilization\n---------------------------------------------\nIt might seem like closing a credit card you never use would help your credit score. However, if you have outstanding balances on one or more credit cards, closing an unused credit card account will increase your utilization ratio by reducing your total borrowing limit.\nIf your utilization percentage is in the low single digits, that may not matter much—and if all your card balances are zero, it won't matter at all. But if your total utilization is closer to 30%, closing the unused card could end up hurting your credit score.\nIf you're eager to get rid of an old card (because it has an annual fee you don't want to pay, for instance), consider getting a new card first. As long as the new card's credit limit equals or exceeds the old card's, it will compensate for the loss of the old card's credit limit. END