The credit cards that should never be closed

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » The credit cards that should never be closed

The credit cards that should never be closed

Most often than not, when consumers find themselves facing huge debts on their credit cards without a means to repay them, they feel closing the credit card is the only option. However, this is not the truth. It is important to understand that closing the credit cards does not imply your debts will be completely eliminated. Instead, closing a few credit cards can have a negative impact on your credit history. Let us take a look at a few credit cards that should not be closed.

Cards with outstanding balances

The first step most individuals take when they have high debt on their credit card is to close it. This is definitely not a good idea. Here is the truth you need to know. When you close a credit card just because of a high balance, even if you have available credit limit, it will be reduced to $0. So, when it reaches the credit bureaus, they will assume you are closing the credit card because you have utilized the entire amount on it. This can tarnish your credit report. 30% of your credit score comprises of the debts you have incurred on your credit cards and cards with $0 balance and pull it down significantly.

Oldest credit cards

If you have a credit card that you obtained years ago, never think of closing it. The terms and conditions governing credit cards issued a few years ago are more favorable compared to the ones being issued now. Closing such credit cards can be a foolish decision because, try as hard as you may, you cannot get such good deals on any of the current credit cards.

Only one credit card in your wallet

If you have just one credit card in your wallet and want to close it because of high debts, it is a totally unwise decision. Under the circumstances you are currently in, closing the credit card would imply you would be left without credit cards for a long time. Credit card lenders have tightened their belts and the eligibility criteria for availing the credit cards are extremely stringent. Closing your only credit card would mean you would not have any in case of emergencies.

Rather than closing credit cards, consider opting for various debt consolidation options that are offering special deals for customers in dire need. This will not only help ease your financial mess, it will also prevent you from pulling down your credit score further.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Posted: December 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: December 1, 2017

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading