Important Tips On Closing Credit Card Accounts

Avoiding having too many credit card accounts is what most experts would advice consumers. If opening a new card because it has better rates is what you decide to do, then properly closing your existing credit card is important. When opening a new card, there are a number of reasons why you should close existing accounts.

Allowing you to have control over some of your cards is closing them. Having multiple cards would mean it’s easy for some of them to get lost. You are susceptible to being a victim of fraud if this happens and someone finds it. Closing your accounts will also allow you to maintain a good credit report. You credit score may be lowered if you have multiple accounts, because you are seen as being a risk. Closing your accounts will also allow you to avoid fees and universal default.

If you have credit card accounts that are not being used, you should have them closed. But damaging your credit score is if you close your oldest card, and this is something you would want to avoid. You will also avoid being the victim of identity theft. Some credit cards have annual fees and this is an important thing to remember and even if you’re using them, you will be charged. If there’s a balance in an account that you are trying to pay off and you don’t want to use it, you can continue making payments when you’ve canceled the card. Doing this will keep you from adding more money to the credit card and using it.

It is important to remember that it is best to have a single credit card, but at the maximum you should only have three. Your creditors will reward you for using them in a responsible manner and this will keep your credit score in good shape. For making specific payments you would want to reserve a credit card and you can also set up a plan to make sure it is paid off by the end of the month. If you cancelled a credit card, you need to cut it up. Someone would steal it and reopen the account if you don’t.

Calling the company and to cancel the card is an important step you should take. Just because you cut up the card doesn’t mean it’s closed. You may have to submit a request in writing. The company will typically send you a letter confirming the account has been closed in about 14 days.

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