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When to Cancel Your Credit Card

Credit card management seems to be an enemy for people who cannot manage their finances properly. Some would want know when to cancel your credit card completely but is cancelling credit cards the right thing to do? Using credit cards in United States of America means that one has a credit score to maintain. This credit score measures ones creditworthiness, determine types of credit one can obtain and how much credit limit one can have. Credits cards are made to be used for necessary purchases like a car loan, a mortgage, rent on one's apartment and multiple other bills and one does not need to carry hard cash anywhere. These purchases or payment habits are reported to credit bureaus, who then convert one's purchasing habits into credit scores. The decision when to cancel your credit card is up to how one views the pros and cons.

When you want to cancel your credit card, consider the advantages and disadvantages in doing so. As we all know, work may be intermittent among blue collared jobs so maintaining a credit card may be a bit of a burden because of incurring interest rates and hidden fees and being unable to pay the credit card company will be detrimental to one's credit score. Therefore, it would lead a bunch to an option of cancelling out credit cards they have. There is a better way on when to cancel your credit card. Cancel out the new ones first before the old ones. A credit card that's been with you for a long time though unused leaves a very good impression in one's credit score for having it adds weight on its credit history.

When you want to cancel your credit card is solely up to you. The disadvantage of cancelling credit cards is that it will directly affect one's credit score temporarily especially if it has a balance on it. When you want to cancel your credit card, it is better to pay up the whole balance of your new credit card first then make sure that everything is paid up in full by calling customer service to be sure that the whole balance is zero because one might still be accumulating interest. When everything is verified, cancel your credit card by phone and request a statement that the account is already closed and keep the statement for future use.

Never inform customer service that you have plans on when to cancel your credit card for they may increase interest rates as a form of penalty before you close your account. When you want to cancel your credit card, leave only one credit card that has been with you for a very long time or a card that earns rewards to one's advantage. When one has plans to get a better deal in purchasing a home or a car, this is the time when not to cancel your credit card before you get approved for a loan. This will help manage one's account and will probably not affect your credit score. When you want to cancel your credit card and the balance is totally balance-free, nothing bad would happen to your credit score so go ahead and cancel it.