Closing Credit Card Accounts

Are you thinking of closing a credit card account? If so, there is one thing you need to remember: this most likely will not help your credit score. No matter what you hear you need to know that closing an account is not always helpful. This does not mean that you should never do it, but it does mean that it may have a negative effect on your credit report and score. Are you willing to take a hit just to close an account? This is the question that you need to think about.

There are two reasons why closing a credit card account will bring down your credit score. First and foremost, it will decrease your debt to credit ratio. A large part of your credit score rating is made up of how much debt you have when compared to your available credit. Take for example a person with $20k of available credit, or two cards with a $10k limit each. If you close one of these down your available credit will immediately get cut in half. In turn, your credit score is going to be negatively effected.

Secondly, your credit history is affected when you close an old account. It is good if you can show a history of managing credit card debt over a number of years. If you close down your old cards they will no longer be working in your favor by showing that you have had a long history with that credit institution. It is not ideal to close credit card accounts, and this is particularly true for the ones that have been open the longest.

But I really want to close down some of my credit card accounts? Even though many consumers are well aware of the downfalls they still want to close some accounts for one reason or the next. Maybe you can no longer keep track of so many accounts. Maybe you are concerned that you are going to become a victim of identity theft. If you must close a credit card account choose the one that is newest. For consumers who want to close more than one account it is a better idea to do so one at a time spread out over many months. Close one card, sit back, and see what it does to your score. Credit Card Processing Services
Credit Card Processing Services, Credit card processing Machines and Merchant Account Services. Lowest Guaranteed Pricing on all Credit Card Processing Services. Start Processing Credit Cards Online with First Data and online credit card processing, credit card processing machine,processing Credit cards, Accept Credit Cards, Credit card processing equipment, Credit card merchant account, Credit card payment, credit card machines, credit card payment processing, Merchant Services, Accepting Credit Cards also done here.

For the most part, it is never a good idea to close credit card accounts. Unless absolutely necessary, keep all of your accounts open and in good standing. This will help to ensure that you keep the highest possible credit score.

If you are interested in finding better credit card offers then you might want to open a new credit card account.