credit cards

5 credit card mistakes to avoid making

Credit Cards » 5 credit card mistakes to avoid making

Closing your account
Closing your account © Brian A Jackson/Shutterstock.com

Closing your account

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.

Top No Annual Fee Card Offers

The best no annual fee credit cards for you may be a click away. Check out card offers from our Bankrate.com partners.

See Card Offers

advertisement

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 16.12%  0.05 16.07%
Cash Back Cards 16.45%  0.01 16.44%
Low Interest Cards 11.23%  0.02 11.21%
 
Search
advertisement
CREDIT CARDS WEEKLY NEWSLETTER
Credit cards on a table

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

advertisement

Credit Card Blog

Jeanine Skowronski

Credit bureaus to change ways

The three big bureaus will pay a fine and change how information is added, reviewed and removed from credit reports.  ... Read more

Partner Center
advertisement

Connect with us