credit cards

5 credit card mistakes to avoid making

Closing your account
Next
6 of 7
Back

The rationale: You've finally paid off a card with a monster interest rate and are determined to rid yourself of that relationship for good.

The rebuttal: While it may feel good to close your account and put the card in the shredder, doing so could actually have a negative impact on your credit score. By closing the account, you reduce your available credit line, which increases your ratio of debt-to-available-credit. Instead, keep the account open but keep the card out of sight. Ray suggests putting this "emergencies only" card in a safety deposit box at your bank or in your freezer at home.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.71%  0.01 15.70%
Cash Back Cards 16.36% --0.00 16.36%
Low Interest Cards 10.91% --0.00 10.91%
 
Search
advertisement
CREDIT CARD WEEKLY NEWSLETTER

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

advertisement

Blog

Allison Ross

BofA to pay $772 million over credit cards

Bank of America is refunding about $738 million to customers in addition to $45 million in penalties.  ... Read more

Partner Center
advertisement

Connect with us