Why would you want to cancel your credit card?
For avid shoppers, credit cards can be a blessing, so would most credit counseling experts urge you to cancel an existing card? If you sense impending financial trouble, closing an account prohibits you from making further purchases and raising your due amounts. Secondly, a closed account protects you from potential identity theft. In addition, cards with annual fees and high interest rates should be closed.
Should I roll my balance to another card?
Transferring balances from an old card to a new card is one tactic used by consumers in order to avoid high interest rates. At times, the maneuver can be useful in saving you money, but it is highly advised to read all fine print. Some card companies may charge you a high one-time fee for a card balance. In addition, seeking consumer credit help may be a better option than prolonging your situation and creating an opportunity to make your financial situation worse.
Canceling doesn’t immediately influence credit history
It is to be understood that canceling a credit card does not immediately influence your credit rating. Negative information such as late payments usually stays on your credit report for about seven years. A closed card with a zero balance may stay on your credit report for up to ten years.
Know your options
Consider Credit Counseling
You may currently find yourself in a dangerous financial situation. It is important for you to know your options. Credit counseling agencies are available online to help you improve your situation. These services help you orchestrate a debt management plan as a beginning to the road towards financial recovery.
DebtGuru.com ( http://www.debtguru.com ) is the Internet domain for American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization.
The staff at American Credit Foundation has been helping people achieve their financial goals since 1994. The Foundation was incorporated with the objective of meeting a long-standing need for a debt management program designed for people who were frustrated with their debt situation and looking for a simple way to get out of debt quickly (via debt consolidation or other means), as well as lower their monthly payments without having to qualify for a consolidation loan.
