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Canceling Credit Cards: 5 Questions to Ask Before Closing Accounts

Not sure if you should cancel a credit card? Laura answers a listener question and gives you five questions to ask that will help you know whether closing a credit card will barely affect your credit scores or end up hurting your finances.

 
 
By
Laura Adams, MBA
Episode #457

What to Do With Unused Credit Cards

If you go through these questions and determine that you should not close a credit card, simply use it to make a small purchase from time to time that you pay off in full, so it stays active.

There isn’t an exact number of active credit cards you need to build or maintain excellent credit. But you may need a low-rate card for times when you must carry a balance and a higher-rate rewards card for charges that you always pay off each month.

No annual fee cards are best, but some of the best rewards cards may charge a fee. It may be worth it, depending on the benefits you’ll get from the card.

The bottom line is that how you open and close cards directly affects your credit scores, so you need a solid strategy to protect your credit.

Related Content: What to Know Before You Cancel a Credit Card

To learn much more about credit, download the Credit Score Survival Kit. It’s a free multimedia resource I created as a gift for you with a video tutorial and 3 smart strategies to build excellent credit scores (that you can real or listen to). Plus, I tell you how to save money by getting your credit score absolutely free as often as you want.

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a trusted and frequent source for the national media. Her book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show. 

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