Canceling a credit card that you are not using can actually hurt your credit score. What you want to do is retire it to a safe place where you keep your other financial records? Why? When your credit score is being calculated, one of the things that the three credit reporting agencies look for is your total available credit. If your total available credit is $30,000 on three credit cards and you cancel one of the cards with a credit limit of $10,000, this will reduce your overall available credit to $20,000, which will cause these credit reporting people to possibly lower your credit score. Another way that canceling the credit card could hurt you is because you will then be utilizing a larger percentage of your available credit. If you are using at total of $10,000 of your available $30,000 in credit, you are using about one-third of your available credit. That’s higher than want banks like to see, but it is okay. If you cancel one of the three credit cards, now you are using 50 percent of your available credit. They like that less. What they really hate to see is you maxed out on all of your credit cards.