SHREVEPORT, Louisiana (KSLA) – A new report shows Americans are increasingly using credit cards. According to the report, shoppers made purchases from stores containing plastic more than 82% of the time.
These purchases could get you in trouble, especially if the pandemic has restricted your cash flow. If you think things might get out of hand or think you have too many credit cards, there is a way to close those cards and not hurt your credit.
First, make sure you make more than the minimum payment and don’t skip payments so your credit card debt doesn’t get worse. If you’re looking to cut a card, look at your oldest card first. Having a longer credit history is good for your credit score, but if you decide to cancel your oldest card, you won’t see the effects on your credit right away. It takes about 10 years for this to show up on your credit score.
Here are four things you should ask yourself when canceling a card, according to CNET.com.
- If you have a high ARP – Get rid of your high interest card if you only plan to make minimum payments
- Watch the fees – If you have a high annual fee or late fee, waive it
- Overspending – If you frequently overspend, this card should go away
- Unpaid Debt – The first thing to consider is to cancel your cards if you have unpaid debts so that you don’t be tempted to keep spending.
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