If you’re thinking about closing a credit card account, it’s probably for one the following reasons:
- You worry that possessing a credit card could tempt you into spending too much money.
- You’re tired of the high interest rates or annual fees. (Tip: you could try to negotiate a lower rate first.)
- You found a different credit card that gives you a better deal.
Closing a credit card won’t hurt your credit, as long as you do it the right way.
So if you’re thinking about canceling a credit card, just make sure that you follow the 4 steps below.
If you take a shortcut – like cutting up the credit card (so you cannot possibly use it anymore) or freezing the credit card (to keep yourself from being tempted to use it) – you could end up hurting your credit.
3 Ways Closing A Credit Card Affects Your Credit
Read more: Closing Credit Cards: How To Cancel A Credit Card Without Hurting Your Credit