Credit Cards That Should Never Be Closed


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Credit Cards That Should Never Be Closed

Credit Cards That Should Never Be Closed

The content is accurate at the time of publication and is subject to change.

Credit cards pose to be a big problem to customers when they have amassed so much credit that they are not able to repay it. Due to the non-repayment of their dues, these cards become delinquent. Customers feel that the best way to overcome this problem is by closing the credit cards that they are not able to manage any more. However, this can be really detrimental. However, most often than not, closing cards that are in the delinquent stage will hamper your credit history rather than helping it. Hence, let us take a look at the cards that you should not consider closing.

First of all, do not close any credit card that still has dues on it. When you close the card that has a balance, it will reflect a $0 credit limit. This can be detrimental because it gives the impression that you have utilized the entire amount on the card. The dues on the cards account for 30% of the score on your credit report and having a maxed out card can have a drastic negative impact.

Do not close the credit card that has some of the best terms and conditions on it just because you have utilized so much on it that you cannot repay. Instead talk to the bank officials and find a solution to clear off your debts. The cards that are available in the finance market today have strict terms and conditions and the qualifying criteria are very rigid.

Refrain from closing the credit card that you have been holding from a long time. Closing these cards will shorten your credit history. When applying for loans or mortgage or another credit card, banks and other financial institutions will consider the people with short credit histories to be riskier than people with longer ones. Though the impact of closing these cards will not be reflected immediately on your credit report, it is imperative to avoid closing them since they will pull down your credit score when they finally show up on your report a few years down the lane.

If you have just one credit card with you, never ever think of closing it. It is easier to try clearing off the debt on this card rather than closing the card and applying for a new one. The chances of the new card getting approved will be bleak if you don't have a good credit history to your backing. Rather than not having any card, it is better to hold on to the one you have on hand.

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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

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
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!