What does opening or cancelling a credit card do to my credit score?

This article discusses the impact of opening or cancelling a credit card on your credit score. It explains that credit scores are calculated by credit bureaus using factors such as payment history, credit utilization, credit history, diversity of credit, and hard credit inquiries. Opening a new credit card can lower your credit utilization ratio, but applying for multiple cards at once can negatively affect your score. Closing a credit card can increase your credit utilization ratio and may cause positive credit history associated with that card to fade away. The article advises caution when considering welcome offers for new credit cards, as they can temporarily lower your credit score and distract from long-term financial goals. It concludes by recommending that individuals only apply for new cards if they can pay the bill in full each month and suggests seeking credit counselling for additional support. [Extracted from the article]