Canceling Credit Cards

Once a credit card balance has been paid off, it may be tempting to close the account. However, before picking up the phone or writing a letter to cancel the card, it is important to learn about the immediate and long term effects that canceling a credit card will have on your credit history and credit score.

If you have found yourself struggling with large amounts of credit card debt, and your payments have become too high to manage, it is time to learn about your options. Contact an Arizona bankruptcy attorney at the Harmon Law Office, LLC, today at 480-829-0494 for a free consultation.

Reasons to Cancel Credit Cards

Canceling credit cards may come with an immediate sense of relief. Many people choose to cancel their cards because of the following benefits:

• Decreases risk of identity theft
• Prevents unnecessary spending
• Makes it easier to keep track of bills
• The positive data on the account will remain a part of a person’s credit history

Drawbacks to Canceling Credit Cards

However, canceling a credit card is not always the best option. It may actually negatively affect your credit score in the future. The following are the drawbacks of canceling a card:

• The history of a closed account does not come off your credit history.
• A credit score is partially based on the amount of open credit. Canceling a card will reduce a person’s amount of open credit.
• The older the credit, the better. Therefore, closing old cards and opening new ones is not necessarily in your best interest.

Contact Us

If your credit card situation has become confusing and hard to manage, contact the Arizona bankruptcy attorneys at the Harmon Law Office, LLC, today at 480-829-0494 to discuss your options.