Credit Card Equipments

Closing Credit Card Accounts
By Joseph Kenny

Most experts advise consumers to avoid having too many credit
card accounts. When you decide to open a new card because it has
better rates, it is important to make sure you properly close
your existing credit card. There are a number of reasons why you
should close existing accounts when opening a new credit card.

Closing some of your cards will allow you to have control over
them. When you have multiple cards, it is easy for some of them
to get lost. If this happens, you are susceptible to being the
victim of fraud if somone finds it. Closing your accounts will
also allow you to maintain a good credit report. You credit
score may be lowered if you have multiple accounts, because you
are seen as being a risk. Closing your accounts will also allow
you to avoid fees and universal default.

Any credit card accounts which are not being used should be
closed. At the same time, you want to make sure you don't close
your oldest card, as this could damage your credit score. It
will also allow you to avoid being the victim of identity theft.
It is important to remember that some cards have annual fees,
and you will still be charged even if you're not using them. If
you have an account with a balance that you are trying to pay
off, and you don't want to use it, cancel the card and continue
making payments. This will keep you from using the credit card
and adding more money to it.

It is important to remember that it is best to have a single
credit card, but at the maximum you should only have three. This
will keep your credit score in good shape, and your creditors
will reward you for using them in a responsible manner. You will
want to reserve a credit card for making specific payments, and
setup a plan to make sure it is paid off by the end of the
month. If you cancel a credit card, make sure you cut it up.
Otherwise, someone could steal it an reopen the account.

It is important to make sure you call the company and cancel
the card. Don't assume that the card is closed just because you
cut it up. You may have to submit a request in writing. The
company will typically send you a letter confirming the account
has been closed in about 14 days.

About the Author: Joe Kenny writes for the credit card
comparison sites http://www.creditcards121.com and
http://www.cardguide.co.uk

Source: http://www.isnare.com