This US couple nearing retirement owns a stunning 42 different credit cards — including store cards, gas cards, regular cards. They want to cut down. But here’s how it could hurt them

“As we near retirement, what should we do to pare down this number so it's more manageable?” they asked, worried about the impact of closing dozens of accounts.

With so many open accounts, this couple's dilemma isn’t just about cutting back — it’s about finding a balance between simplifying finances and preserving their credit history. Closing too many cards at once could lower their credit score, but keeping them all active is unnecessary.

Think twice before closing a credit card

While this couple’s concern about closing so many credit cards is valid, holding onto 42 is far from typical. For context, the average U.S. consumer has 3.9 active credit cards, according to Experian.

Canceling a credit card might seem like a smart way to simplify your finances, but it can hurt your credit score. That’s because your credit utilization ratio — the percentage of available credit that you’re using — is a key factor in your score.

For example, let’s say you have five credit cards with a total credit limit of $50,000 combined, and you’re carrying a $5,000 balance across all of them. That balance isn’t a problem because it only takes up a small portion of your total available credit.

But if you close two of those cards, your total credit limit drops to $30,000 — but your $5,000 balance stays the same. Since you now have less available credit, the percentage of credit you’re using jumps significantly. Even though your debt hasn’t increased, your credit score could take a hit because lenders can see that you’re using a larger portion of your available credit.

What to do with 42 cards

Though closing credit cards can impact your credit history, there are ways to downsize your accounts while protecting your score.

A strong FICO® Score typically sits in the 700 to 800 range. About a third of American consumers fall between 600 and 750, while nearly half have scores above that range. To avoid unnecessary damage to your credit, Singletary advises paying off any remaining balances before closing a card.

She also advises consumers to pay off their credit card balances in full each month by the due date, reinforcing a strong payment history. For those who consistently make on-time payments and maintain low balances, closing a credit card is unlikely to have a significant impact on their credit score.

As Rod Griffin, senior director of consumer education and advocacy at Experian, explained to CNBC Select, “While your scores may decrease initially after closing a credit card, they typically rebound in a few months if you continue to make your payments on time.”

For someone who has a lot of credit cards — like this couple with 42 cards between them — Singletary recommends keeping the cards with the longest credit history open in order to “maintain positive reporting in your files and a higher average age of your accounts.”