Best credit cards to cancel without hurting your credit
SHREVEPORT, La. (KSLA) - A new report shows Americans are using credit cards more and more. According to the report, shoppers made purchases at stores with plastic more than 82% of the time.
Those purchases could get you into trouble, especially if the pandemic has made your cash flow tight. If you feel like things might be getting out of control, or you feel you have too many credit cards, there’s a way to close out those cards and not hurt your credit.
First, make sure you’re making more than the minimum payment and don’t skip payments so your credit card debt doesn’t get worse. If you’re looking to clip a card, look at your oldest card first. Having a longer credit history is good for your credit score, but if you decide to cancel your oldest card, you won’t see the effects on your credit right away. It takes about 10 years before that shows up on your credit score.
Here are four things you should ask yourself when canceling a card, according to CNET.com.
- If you have a high ARP - Get rid of your high interest card if you only plan to make minimum payments
- Watch the fees - If you have high annual fees or late payment fees, cancel it
- Overspending - If you’re frequently overspending, that card needs to go
- Outstanding debt - The first thing you should consider is canceling your cards if you have outstanding debt so you won’t be tempted to keep spending
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