closing a credit card without a balance
When you’re not behind on payments and you’ve settled every due bill to your credit it feels great. But afterward, should you now close the account or leave it open. In as much as it feels great to pay off your credit, there are good reasons why you should close your paid credit. The reasons include:
To reduce or minimize the number of credit cards used | closing a credit card without a balance
The number of credit cards or account you make use of is probably much and you want to reduce them. Too many credit cards wouldn’t allow you to check or detect fraudulent acts on your credits and will also deprive you of meeting up with other financial obligations thereby having a negative effect on your cash inflow.
Some credit cards have better and generous offers | closing a credit card without balance
Credit Cards Company differs so also there terms and conditions. There are credit cards with a mind-blowing rewards program and better options like good credit limit, low-interest rates and probably the late payment fees charged are relatively lower. So when you make a review of your credit cards, you should close any card you feel is not beneficial to you.
Another good reason to close a paid credit is simply to avoid debts.
Too many credit cards can lore you into having more than you can pay. It takes hard work to meet up with payments on credit but such efforts can be shattered when measures are not taken by you to avoid debt potentials. So it is better for you to close a credit card is than falling into a debt situation again.
Don’t expect some things after you’ve closed your credit
Closing a credit has numerous benefits just as we’ve discussed above. But when you close your credit, there are things that won’t necessarily change. So it’s very important for you to know what not to expect after you’ve some of your credit. Your credit report or statement remains regardless of the card closure, in fact, closing the card has a tendency of having a negative effect on your credit ratings.
Most times the account closed reflects on your credit report until the expiry date. If you closed the account as a result of delinquencies it will remain on your report for about seven years but if you have a good standing that is debt-free, it will only remain on your report base on the credit bureau’s time frame for reporting closed accounts.
Accounts that should be left open | closing a credit card without balance
Having known the benefits of closing some credit card account, the remaining card with available credit should be maintained because it sustains your overall credit use that has up to 30% of your credit ratings. An account should be reserved or kept if it’s the only available credit card. Ensure that you also make regular use of the account or face account closure by your card company for non-use of account especially if the account has not been used for months. You can make periodic purchases probably ones in a month to keep it active and free from closure.