PJMurphy

Let's say you have 5 credit cards, each with a $2000 limit, that's $10,000 in available credit. In total, you are carrying $4000 in debt spread across the cards. You are in debt for 40% of your available credit.

Now you have a look at the cards, and decide that 2 of them aren't as good as the others. Maybe they have higher interest rates. Maybe they have fees that you aren't comfortable with. So you cancel them.

Now your $4000 debt is spread across $6000 in available credit, and you have just injured your credit score by jumping to 66% of your available credit, without going an extra dime into debt.

A better plan would be to contact the issuers of the 2 cards you don't like, and threaten to cancel the cards unless they offer you more attractive terms, or to convert the card to a better type. They will often be willing to do this because they track "retention" as one of their statistics. Losing a customer is a big no-no, and reflects poorly when it comes time for them to apply for a promotion or a raise.

This way, you maintain your available credit, keep your usage of that credit to a lower percentile, and save some money on the terms.