Should you cancel credit cards. You should be able to find the number for customer service on the back of your card. There are a number of reasons not to close your credit cards and sometimes you can even still keep a card without paying an annual fee for it. It requires you to follow specific steps to close the credit card account for good with the least damage to your credit score.
Before you pick up your scissors though know this. If youre carrying a balance on any of your other credit cards this can increase your aggregate. You want to cancel your credit card.
See more credit card help stories. Alternatively if you dont want to speak with customer service over the phone you might be able to cancel online after. Another factor thats used in calculating credit scores is how long youve had credit accounts.
Call your credit card issuer. If you cancel one of your credit cards you will have a lower amount of total credit available. Dont cancel credit cards youve had for a long time.
But there are two big financial reasons why you. When you should cancel a credit card. First of all we should be clear that there really arent any hard and fast rules about when you should cancel one of your credit cards.
However if you need to cancel a card do your best to reduce all your credit card balances first preferably to 0 so you can either minimize or totally avoid any credit score damage. Go to your credit cards website. With 1000 in credit card debt your utilization rate jumps to about 33.
However if you do not plan to use the card you may want to close the account because it is the right thing to do for you financially. Canceling a credit card the right way involves more than simply snipping it in two. If you are planning to apply for credit in the near future especially for a major purchase such as a home or car you should use caution in closing accounts.
As if credit utilization and having a mix of credit accounts werent enough a canceled credit card hurts your credit in other ways. When you close the card with a 2000 credit line your available credit decreases to 3000 total. To start the process tell them youd like to cancel your credit card.
Should You Cancel Your Unused Credit Card Frank S Super Communication
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