| Here are two important questions for credit card | | | | canceling a credit card can hurt your credit score |
| consumers: | | | | which is used during the home, car, boat etc. loan |
| How many credit cards do you have? | | | | process. If the balance on the old card is zero, then |
| Do you need all of them? | | | | simply keep it put away until after the future |
| Many consumers carry several credit cards with them | | | | transaction has taken place. Once the transaction is |
| on a daily basis, but use only a few over any given | | | | finalized, you can cancel the card. |
| period of time. For many people, two or three credit | | | | When it is time to actually cancel the credit card your |
| cards are all that is truly needed. The rest of them can | | | | first step should be to contact the creditor. In some |
| be cancelled, and probably should be cancelled. | | | | cases, you can cancel an account via phone. In other |
| One of the very best reasons for canceling some of | | | | cases, you need to do it by mail. |
| those cards is that it reduces your temptation to use | | | | If you cancel by phone and you have been a good |
| them. After all, you cannot put additional credit on | | | | customer do not be surprised if you end up talking to |
| something that you do not have. However, before you | | | | someone who will try to convince you to keep the |
| begin chopping up those unused credit cards, consider | | | | account open. In some cases, they may offer you |
| the following. | | | | some incentives for staying with them. This might |
| Make sure that the credit card you are going to cancel | | | | include a lower rate, better promotional deals (air miles |
| is an empty account. This means that the balance on | | | | or phone minutes for example) or any other benefit |
| the card is zero. If you owe anything on the account, | | | | that they feel you might enjoy. If the new rate, for |
| even a few dollars, make sure that you pay it off | | | | example, is lower than some other card that you have, |
| completely before you cancel the card. | | | | you may want to reconsider your cancellation. If the |
| Silence is golden. If you are planning to cancel a card, | | | | new incentives do not make a substantial difference, |
| keep it to yourself. In other words, do not tell the credit | | | | go ahead and cancel. |
| card company that you are planning to leave. This | | | | You should also ask that the credit card company tell |
| applies when you have a balance on the account but | | | | the credit reporting agencies that the account was |
| are planning to pay it off and then leave. It does not | | | | closed at your request. Make a note of the time you |
| always happen, but some companies may increase | | | | called, the day you called, and the name of the person |
| your interest rate on that balance if they think you are | | | | you talked to on the phone. You should get, via mail, a |
| leaving soon. | | | | confirmation letter that your account was closed. |
| Timing is important. If you are planning to apply for a | | | | Follow these steps and canceling your old credit cards |
| big loan in the near future such as a home loan or car | | | | will be painless and safe. You will be happy that you |
| loan you may want to hold onto your old cards (don't | | | | did this work later on when you have fewer bills each |
| use them, just hold on to them). In some cases, | | | | month. |