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Closing a Credit Card
Should I cancel a credit card, and how will it benifit me. I am over my limit and really have no use for the card, but it just seems to keep piling up...please help. Thanks.
Jenn
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Don't cancel it unless you have a problem misusing it. Cut it up immediately and just pay it off. You cannot cancel it until it is paid off anyway, and it helps your credit to keep it open as long as you make your payments.
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hey, well by cancelling your credit card your preventing yourself from charging anything else and adding to your bills. i think its a good idea to do that.
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What Razhie says is true. Don't cancel it. I just want to add that you can cut up your card and not use it. Just don't tell the card company.
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Do NOT cancel your credit card if you are carrying a balance. The money you owe will not go away, in fact, it might just get bigger even faster.
If you are carrying a balance and tell the credit card company you are closing or thinking of closing most will jack up your interest rate to the maximum allowed as a penalty for leaving.
Also, for reasons I find too complex to explain here, closing a credit card with a balance actually hurts your credit limit even more then leaving it open and slowly paying it down will.
There is really no benefit to closing your line of credit while carrying a balance. You must simply use some self control and not use it anymore. Pay it off, and then close it.
If you really can't restraint yourself without canceling the card, then do that, but other then removing the temptation, it won't be beneficial.
If you are having trouble with debt contact your bank, look into consolidating it, reducing your payments or your interest rates. Some people have even been known to pay off one line of credit with another that has a lower interest rate. So speak to your banker, and if they aren't helpful look for a community resources to help you manage your debt. There are a lot of ways to address the problem, but it's really something you want professional advice on first.
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