Most experts advise consumers to avoid having too many credit card accounts. 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. Properly closing existing accounts is a must when you open a new credit card, and this is due to several reasons.
Allowing you to have control over some of your cards is closing them. When you have multiple cards, it is easy for some of them to get lost. If this happens and someone finds it, you are susceptible to being the victim of fraud. Another thing you'll get when you close your accounts is maintaining a good credit report. You credit score may be lowered if you have multiple accounts, because you are seen as being a risk. Also allowing you to avoid fees and universal default is closing your accounts.
Any credit card accounts which are not being used should be closed. But damaging your credit score is if you close your oldest card, and this is something you would want to avoid. Being the victim of identity theft is another thing it will avoid. It is important to remember that some cards have annual fees, and you will still be charged even if you're not using them. If you have an account with a balance that you are trying to pay off, and you don't want to use it, cancel the card and continue making payments. Doing this will keep you from adding more money to the credit card and using it.
At the maximum you should have only three credit cards although it's important to remember that it's best to have a single credit card. This will keep your credit score in good shape, and your creditors will reward you for using them in a responsible manner. You will want to reserve a credit card for making specific payments, and setup 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. If you don't the account can be reopened if someone steals it.
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.
Allowing you to have control over some of your cards is closing them. When you have multiple cards, it is easy for some of them to get lost. If this happens and someone finds it, you are susceptible to being the victim of fraud. Another thing you'll get when you close your accounts is maintaining a good credit report. You credit score may be lowered if you have multiple accounts, because you are seen as being a risk. Also allowing you to avoid fees and universal default is closing your accounts.
Any credit card accounts which are not being used should be closed. But damaging your credit score is if you close your oldest card, and this is something you would want to avoid. Being the victim of identity theft is another thing it will avoid. It is important to remember that some cards have annual fees, and you will still be charged even if you're not using them. If you have an account with a balance that you are trying to pay off, and you don't want to use it, cancel the card and continue making payments. Doing this will keep you from adding more money to the credit card and using it.
At the maximum you should have only three credit cards although it's important to remember that it's best to have a single credit card. This will keep your credit score in good shape, and your creditors will reward you for using them in a responsible manner. You will want to reserve a credit card for making specific payments, and setup 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. If you don't the account can be reopened if someone steals it.
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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