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.
There was also the idea of opportunity discussed by the article on U.S. News and World Report. For example, what if you decide to get rid of a card that, admittedly, does not have the best perks tied to it? While this may seem like a strong option at the onset, the truth of the matter is that it is very easy for a new option to fall through. What this means is that you may not be able to retrieve the same option that you had before. Even if you don't use an old card, it's important for it to stick around as a means of insurance.
If you ever have the interest of closing your credit card, I can only hope that these tips will be able to give you a better understanding of the matter. You do not want to get rid of your current options right away, especially when there are certain components that stand out. You never know what might happen, in regards to your credit card, so you should exercise care when switching over. The more mindful you are when going about this process, the easier a time you'll have in the long run.
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.
There was also the idea of opportunity discussed by the article on U.S. News and World Report. For example, what if you decide to get rid of a card that, admittedly, does not have the best perks tied to it? While this may seem like a strong option at the onset, the truth of the matter is that it is very easy for a new option to fall through. What this means is that you may not be able to retrieve the same option that you had before. Even if you don't use an old card, it's important for it to stick around as a means of insurance.
If you ever have the interest of closing your credit card, I can only hope that these tips will be able to give you a better understanding of the matter. You do not want to get rid of your current options right away, especially when there are certain components that stand out. You never know what might happen, in regards to your credit card, so you should exercise care when switching over. The more mindful you are when going about this process, the easier a time you'll have in the long run.
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