Credit cards can be very tempting to those of you with bad shopping patterns. When you realize that your credit card has gone out of control, you may feel that the best thing you could possibly do is to simply cut off those credit cards.
However, that is not entirely true.
First of all, the advances made in technology and the Internet have made it possible to buy things online even if you don’t have the actual card on you. All you would have to do is sign in to your e-commerce account and all the detail will be there. Since you haven’t actually closed your credit card loan account (or at least, not officially), you will feel tempted to buy unnecessary things again.
Secondly, even if you do contact your lender to close the accounts, leaving your credit cards behind may still not be a great idea. The main reason is the fact that these cards influence your credit score and that, if you do plan to take a loan in the future, your trustworthiness in the eyes of the lender will diminish.
The explanation behind this fact is quite easy to understand: your credit cards and your debt on them are in tight relationship with how you are perceived by credit agencies. For example, if you have two credit cards, each of them has a limit of $5,000 and you owe a total of $3,000, the ratio will be $3,000/$10,000. If you close one of the accounts and transfer your debt unto your remaining credit card, the ratio will be of $3,000/$5,000, which is obviously riskier for any lender out there.
Furthermore, if you do decide to close at least one credit card account, make sure that it is the one you have opened most recently. By keeping your oldest credit cards you will not simply delete the years of being a good utilizer who has paid his bills on time.
The key to being debt-free and having a good credit score due to your credit card is to be very determined not to spend on anything you do not actually need. However, if you still feel that your credit card is a big source of problems for you, do close down the accounts. Getting into more debt for the sake of your credit score is definitely not something you should do.