Which credit cards should you never close?

The US consumers have been relying too much on the aid of credit cards, either because they are opposed to using cash amounts or simply that they may not have too much cash in hand. At least this is what the recent economic downturn has established, when people had incurred huge debts and were obliterated with overextended credits which on the other hand had led people to rely on the best debt management programs to recover from their debt burdens. However in spite of all the negative things that have been spoken about the credit cards, canceling them may not be the right thing to do always, and let us have a look at those credit card accounts which we should never close:

•    Those cards which has some balance left should never be discarded simply because the total balance that is available is lowered to zero amounts or rather those credit cards with no credit limits have still been left with some balance it can also be said that the card has been maxed out which has a negative implication on the credit score.

•    If you have intended to close the only credit card that you owe it will lower the total credit that is available or it can also rob you of the power of utilizing your credit which is highly disagreeable.

•    A portion of your credit score is controlled by the total number of credits that you actually use therefore maintaining a credit card can also imply that it can be used towards building a higher credit score. Furthermore you can have problems to secure a credit card in future for the creditor may think of you as ineligible.

•    The old credit cards should never be canceled as these accounts are considered to be of more worth when the creditor will assess your credit report as borrowers with short credit history are termed as riskier than others.

•    Those credit cards with good terms of contract should not be canceled for cards with lesser rates of interest and annual fees will be of more use in the long run because they will charge you much less than others.
Consumers are often confounded with the idea of whether to close a credit card account or not, because there are too many of the accounts which have turned delinquent however they should remember that even closing a delinquent account can damage the credit score more than helping it to get settled.

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