The Top 5 Myths about closing credit card accounts.
There is only one time, it is OK to close a credit card. Many so called credit experts will tell you that you should close credit cards that you are not using. This is another mistake people can make when trying to improve their credit. Length of credit history is the most important positive factor you can have on your credit report. So you must be very careful when deciding what credit card to close and what credit card to keep. I would tell you that you should never close any credit card unless………. You watch this video first.
Below are the Top 5 Myths about closing credit card accounts.
1. Some will say don’t close a card because it will reduce your overall debt to available credit ratio. This is a very minor factor the individual debt to high balance is always vastly more important.
2. Close your old credit card when you get a new one… (Even if you don’t use it keep it open long credit history)
3. Close your credit card if you don’t use it any more. (Even if you don’t use it keep it open long credit history)
4. Close your credit card when you leave the country. ( important to keep all credit active so when you return you will not have to re start your history, Also you should let the credit card company know where you are going so they don’t flag the activity as possible fraud)
5. Close your credit card if you were shopping at target (don’t close it just get a new number and the history will transfer)