Is it possible that you want to close your credit card? It is possible that you came across another credit card option that had certain benefits you were looking for but never seemed fortunate enough to come across. Before you decide to take action and close your current card in favor of a newer one, Bob Jain will tell you think the situation through. The reason for this is because, when it comes to finance in general, there are always various components to take into consideration before closing your card.
According to an article on U.S. News and World Report, one of the reasons why you should be cautious about closing your credit card is because of how you can possibly impact your credit utilization rate. For those who don't know, your credit utilization rate is essential for the purpose of figuring out what your overall score is. Even if you do not want your old card anymore, it may be in your best interest to keep it around - without ever using it again - so that your utilization rate may go down.
If you are looking to get rid of your current credit card option, Bob Jain will stress the importance of speaking to your bank about it in detail. It goes without saying that your bank does not want to lose a customer, since that very customer may spread the word to people who he or she knows. It's also possible that interest rates and the like can be waived, even to the slightest of degrees, if you stay in contact with your bank. Names along the lines of Jain will tell you that this method can't hurt.
U.S. News and World Report also talked about how you should keep around an older card because of the sake of opportunity. Let's say that you decide to get rid of a card that does not have the best perks or rewards attached to it. Chances are that if you eliminate this option, it will be very difficult for you to come back to it if your newer option fails to pan out. You may never know when you'll need that older card, so keep it around as something of an insurance policy.
Hopefully these points have been able to give you a greater level of insight as far as credit card closing is concerned. While you may want to get rid of these options as soon as possible, there are other variables that can affect you in the long term. It's important to understand these early on so that you can remain on financially stable ground. If you are able to follow these rules, you may find that credit-related endeavors will be made that much easier.
According to an article on U.S. News and World Report, one of the reasons why you should be cautious about closing your credit card is because of how you can possibly impact your credit utilization rate. For those who don't know, your credit utilization rate is essential for the purpose of figuring out what your overall score is. Even if you do not want your old card anymore, it may be in your best interest to keep it around - without ever using it again - so that your utilization rate may go down.
If you are looking to get rid of your current credit card option, Bob Jain will stress the importance of speaking to your bank about it in detail. It goes without saying that your bank does not want to lose a customer, since that very customer may spread the word to people who he or she knows. It's also possible that interest rates and the like can be waived, even to the slightest of degrees, if you stay in contact with your bank. Names along the lines of Jain will tell you that this method can't hurt.
U.S. News and World Report also talked about how you should keep around an older card because of the sake of opportunity. Let's say that you decide to get rid of a card that does not have the best perks or rewards attached to it. Chances are that if you eliminate this option, it will be very difficult for you to come back to it if your newer option fails to pan out. You may never know when you'll need that older card, so keep it around as something of an insurance policy.
Hopefully these points have been able to give you a greater level of insight as far as credit card closing is concerned. While you may want to get rid of these options as soon as possible, there are other variables that can affect you in the long term. It's important to understand these early on so that you can remain on financially stable ground. If you are able to follow these rules, you may find that credit-related endeavors will be made that much easier.
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