Three Credit Cards you don’t want to Close
There are times to close a credit card and times when you should avoid doing so. It is important that you leave open certain cards, while thinking about closing others. Here are three types of credit cards that you do not want to close:
1. Any credit card with a balance. When you close a card with a balance your credit report will show that it is maxed out due to the fact that your available credit will be zero dollars. In turn, your credit score will drop.
2. Your one and only credit card. Even though they can be dangerous, there is nothing wrong with having at least one card with available credit. You don’t want to close down the only card that you have. Not only is this good for some purchases and emergencies, but it will do your credit score some good as well.
3. Your oldest credit card. Believe it or not, older credit card accounts are better than new ones. When you get rid of your oldest credit card you are shortening your history. Once again, this can have a negative impact on your score. You may not see an immediate change, but over time a drop in points could definitely happen.
Are you thinking about closing one of the types of credit cards listed above? If so, you should think twice. It is often times tempting to close an account because it will stop you from using the card. But before you do this you want to make sure you are not jeopardizing your credit score.
