Do you want to close a credit card account but are unsure how it will affect your credit score? There are many reasons why we may want to close a credit card, such as avoiding annual fees, too many fees, high interest rates, or unsatisfactory customer service. Whatever the reason, please review the following to determine what is best for you:
The Fair Isaac Corporation FICO™ states “They would never recommend closing a credit card for the sole purpose of raising the score.”
The debit card in your wallet is physically indistinguishable from your credit cards. It even has a Visa or MasterCard logo on it. Despite the similarities, it’s important to understand…
Our credit counseling and Debt Management Plans help with all kinds of revolving debts, including store credit cards and traditional bank-issued credit cards. Store cards can present some unique challenges…
We’ve recommended that students get credit early and use it wisely to establish a healthy credit record.
Unfortunately, that’s easier said than done. There’s a reason laws like the Credit CARD Act of 2009 get passed: students averaged over $3500 in credit card debt, with 85% of cardholders carrying a balance from month to month and paying hefty fees and interest.
Sometimes having no credit and having bad credit are the same thing in the eyes of creditors. Your answer should be the same in either situation; establish a new credit account and use it very carefully, paying your monthly payments in full and on time.
If you have no luck getting a credit card from a retailer, department store, or gas company, talk to your bank (wherever you keep your savings or checking) and ask for a secured card.
Credit cards have become an easy target for Congressional grandstanding and
regulations, but beneath the widely criticized rates and fees lie many good
benefits that are usually hidden in the fine print.
Credit cards can provide
valuable purchase protections and insurance that are unmatched by cash and
debit cards. Yet more consumers are forgoing these benefits and choosing debit cards