For those who have the desire to close their credit cards, it's possible that you had just stumbled upon a newer option. Perhaps it is better for you from a financial standpoint, whether it is in regards to interest rates or what have you. Even though a newer option may look to be more promising, there are other aspects to consider and Bob Jain will be able to say the same. In order to have a better understanding of what you should know before deactivating your credit card, read on.
According to an article on U.S. News and World Report, one of the reasons why you should be cautious about closing your credit card is because of how you can possibly impact your credit utilization rate. For those who don't know, your credit utilization rate is essential for the purpose of figuring out what your overall score is. Even if you do not want your old card anymore, it may be in your best interest to keep it around - without ever using it again - so that your utilization rate may go down.
If you are looking to get rid of your current credit card option, Bob Jain will stress the importance of speaking to your bank about it in detail. It goes without saying that your bank does not want to lose a customer, since that very customer may spread the word to people who he or she knows. It's also possible that interest rates and the like can be waived, even to the slightest of degrees, if you stay in contact with your bank. Names along the lines of Jain will tell you that this method can't hurt.
What about if an opportunity seems to fall through? What if you decide to get rid of your current option - potentially with very few perks and benefits tied to it - only for your newer option to prove to be less than beneficial? As U.S. News and World Report went into detail over, it can prove to be a challenge in order to get back to your older option; sometimes it's impossible. With that said, in order to spare yourself any hassle in the financial sense, keep an older option around for your own benefit.
Hopefully these points have been able to give you a greater level of insight as far as credit card closing is concerned. While you may want to get rid of these options as soon as possible, there are other variables that can affect you in the long term. It's important to understand these early on so that you can remain on financially stable ground. If you are able to follow these rules, you may find that credit-related endeavors will be made that much easier.
According to an article on U.S. News and World Report, one of the reasons why you should be cautious about closing your credit card is because of how you can possibly impact your credit utilization rate. For those who don't know, your credit utilization rate is essential for the purpose of figuring out what your overall score is. Even if you do not want your old card anymore, it may be in your best interest to keep it around - without ever using it again - so that your utilization rate may go down.
If you are looking to get rid of your current credit card option, Bob Jain will stress the importance of speaking to your bank about it in detail. It goes without saying that your bank does not want to lose a customer, since that very customer may spread the word to people who he or she knows. It's also possible that interest rates and the like can be waived, even to the slightest of degrees, if you stay in contact with your bank. Names along the lines of Jain will tell you that this method can't hurt.
What about if an opportunity seems to fall through? What if you decide to get rid of your current option - potentially with very few perks and benefits tied to it - only for your newer option to prove to be less than beneficial? As U.S. News and World Report went into detail over, it can prove to be a challenge in order to get back to your older option; sometimes it's impossible. With that said, in order to spare yourself any hassle in the financial sense, keep an older option around for your own benefit.
Hopefully these points have been able to give you a greater level of insight as far as credit card closing is concerned. While you may want to get rid of these options as soon as possible, there are other variables that can affect you in the long term. It's important to understand these early on so that you can remain on financially stable ground. If you are able to follow these rules, you may find that credit-related endeavors will be made that much easier.
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