The world of personal finance and credit often cross paths, but that doesn’t mean that there aren’t questions that you have about the whole thing. For example, you might be thinking about whether or not you have too many credit cards. Trying to cancel a credit card has good points and bad points that you really need to think about for your own needs.
First and foremost, should you really consider the age of the credit cards. If you have a nice credit card that’s got a lot of history the last thing that you want to do is cancel it. It directly affects your credit score because you will end up cutting off your history in a bad way. If you have a great tradeline that’s always been paid on time, the last thing that you want to do is cut it off while it’s working to increase your credit score. That would be a very bad thing to do, no getting around it.
The more that you can focus on your credit score, the more that you will qualify for even better credit terms in the future. You will need to think about how you want to build your credit history.
A lot of people worry about cancelling credit cards because they don’t want to be tempted. There’s nothing that says that you can’t just cut up your credit card and not use them at all. You can save the credit card for emergencies, which would mean that you wouldn’t need to worry too terribly much about how your credit is taken care of.
Honestly, credit is there to help you and the more that you use it regularly, the more confidence that you build with your current and future lenders. They want to see that you can not only handle credit in the present, but that you can keep handling it well into the future. There’s nothing that says that you cannot use your credit cards for specific purposes.
The problem here is that people end up going overboard when it comes to credit. They use credit to make themselves feel better, often getting into situations that they cannot control. That’s something that tends to make you wish that you really didn’t have to worry so much about credit, but here’s some good news: it’s in your power to make the most out of credit. There’s no guarantee that you will go crazy with credit. Most people own credit cards their whole lives and they really don’t spend much of anything.
Trust in yourself, and the rest will fall into place! As far as the subject of cancellation of credit cards go, we’re of the mind that you should never really cancel a credit card unless it’s very new without having a lot of history attached to it.