A Reddit user with eight credit cards is considering reducing them to three but needs to understand that doing so won't necessarily improve their 650 credit score. Factors such as credit utilization play a significant role, which is the ratio of used credit to available credit. While closing cards might help focus spending and reduce clutter, it could also lead to a higher utilization rate if total available credit decreases. Proper management of credit cards, including using those with low APRs, can assist users in managing debt effectively and potentially improve scores in the long run.
Credit utilization, which measures how much of your available credit you're using, is a key factor in calculating your credit score.
Closing credit cards could lead to a decreased credit limit overall and impact your credit utilization rate negatively.
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