Close Your Credit Cards Based on Fees, Not Just Interest Rates
As you pay off credit cards, you may want to close some unused, high interest accounts. While we know that closing your old cards can be detrimental to your credit , if you have to close your account, look at the fees it will cost you, not just the interest rates.
As Ning’s personal finance blog points out, interest is not the only way a credit card can cost you money. Even an unused card can incur huge non-use fees. If you’re going to ditch some of your cards, find out which ones charge the highest fees, not just the ones with great interest:
Many credit card holders pay an annual fee and don’t even realize it. If you don’t use the card often – or at all – and it comes with a hefty fee, consider canceling it. While this may ding your credit score a few points, it will save you wasting money.
Of course, this should only be one factor you consider. You can use a recurring charge (like, say, your Netflix plan) to keep your old credit card alive without worrying too much about paying without using it. However, this is an often overlooked part of managing your credit that can cost you in the long run.
How To Cancel A Credit Card Without Damaging Your Credit Score | Ning’s money