When Should You Consider Closing Your Unused Credit Card?
Why Close a Credit Card?
Closing a credit card could have unintended consequences for your credit score. Here are three times you should do it anyway.
When to Close a Credit Card?
1. The card charges an annual fee -- consider closing if it's not worth the cost.
2. It's tempting you to overspend -- remove the temptation to avoid costly interest charges.
3. You don't want to keep monitoring it -- close the card if you don't want to check your account periodically.
What to Do After Closing Your Credit Card
1. Contact the card issuer to close the account.
2. Monitor your credit reports after a month or two to assess the impact.
3. Take steps to lower your credit utilization ratio, such as paying your bill twice per month or requesting a credit limit increase.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.