You might be thinking of cancelling a credit card. Perhaps you’re tired of paying the annual fee, you have no use for it anymore, or you’re ready to upgrade to a card with a better rewards program. However, closing a credit card can hurt your credit, especially if it’s an account in good standing that’s been open for several years.

When should you consider cancelling a credit card?

There are a few situations in which it may make sense to cancel a credit card.

  • You are struggling to manage your debt load and are having trouble resisting the temptation of living beyond your means with the card
  • The card has a high annual fee and the benefits aren’t worth it to you

Why should you consider keeping your credit card open?

  • It’s the oldest account on your credit report
  • You don’t have many other open credit accounts, which can result in a weak credit profile, making it harder to qualify for future credit
  • The only reason you’re canceling it is that you don’t use it very often

 

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!