5 Credit cards that should never be closed

5 credit cards should never be closed.

Many reasons have led to people closing their credit cards. It’s important to know that closing your credit card will not cause the default values ​​to disappear, and in some cases, closing your book may have a greater effect on your credit score than it helps.

Do not close any credit card that has a balance | credit cards that should never be closed

credit cards that should never be closedcredit cards that should never be closed

The moment you close a credit card with some balance in it, the total credit amount and credit limit are reported in the amount of $0. A credit card that seems to be outdated can have a very negative impact on your creditworthiness, because the level of credit debt including the use of credit in the available loan amount is 30% of the result.

Do not close your credit card with an available credit.

Probably your only credit card with an available loan will help you reduce your total credit use. Closing this card will result in you getting more credit cards that have balances and more use of credit. Closing an unbalanced card can also affect your credit score because all available funds have been used.

Do not close your only credit card | credit cards that should never be closed

Because part of your creditworthiness, that is 10% is based on the different types of loans you have, keep one or more credit cards and get  points added to your credit score. Make open your credit card to show that you have experience in managing different types of credit accounts.

Do not close your oldest credit card account

When you old credit cards It reduces the average loan age, which is 15% of your credit rating. Lenders often perceive debtors with a short credit history as more risky than a borrower with a longer history, so closing your oldest credit card will not immediately affect your credit rating but when the credit card drops from the credit report for several years, you may notice an unexpected decrease in creditworthiness.

Do not close your credit card with the best conditions.

Any credit card that charges you less for shopping is much better than the one that charges you most. Compare your current credit cards with others on the market now. If you have a better credit card, better leave it open.

When to close the credit card

When you close a new credit card that you no longer use, it’s a good idea, unless the card has a balance and you have other credit cards. Close any credit card that suddenly increases the interest rate or introduces an annual fee after paying back the overdue balance.

in the case of fraud, the creditors will recommend closing the credit card to prevent the thief from making a fraud.

Close the credit card properly | credit cards that should never be closed

Ensure you close the credit card by sending a written notification to the card issuer. First, make a call to cancel your account, but always keep a letter confirming your willingness to close your credit card. Ensure that your credit card is closed on the credit report.

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