If you're in credit card debt and trying to cut back on your spending, closing your credit card and cutting it up might be the best choice you can make. But did you know that closing a credit card has an effect on your credit score? Fortunately, there are steps you can take when closing a credit card that can help protect your credit score.
If you have a credit card that pays you points, airline miles, or other rewards, collect them before you close the card. Sure, they technically are yours even after you've closed the account, but you might have a tough time collecting. If you need to spend more to reach the next level of points, get out a calculator. Figure out whether you'll be paying more in interest than the points are worth before you decide to stick it out.
This site offers information designed for educational purposes only. The information on this Website is not intended to be comprehensive, nor does it constitute advice or our recommendation in any way. We attempt to ensure that the content is current and accurate but we do not guarantee its currency and accuracy. You should carry out your own research and/or seek your own advice before acting or relying on any of the information on this Website.