- The Wisdom Journal - http://www.thewisdomjournal.com/Blog -
Should You Close Your Credit Card?
Posted By Ron On June 29, 2011 @ 1:12 AM In Credit | Comments Disabled
As prices continue to rise for virtually everything we purchase, many people are seeking to limit their debt and debt exposure by closing a credit card. Does this describe you? Maybe you’re interested in limiting your possibility of identity theft and you’re thinking about closing your credit account. In reality, there are both reasons TO close a credit card and to NOT close your credit card.
If you cannot seem to control your spending with your credit card, damage control means closing it is a good idea. Some people put their cards into a bowl of water and then freeze them, or store them in a safe deposit box. In my opinion, those aren’t the best way to handle out of control spending – just cancel the card instead. If you’ve had a difficult time maintaining a credit card, consider a prepaid card, such as the Prepaid Visa® RushCard  instead. Also be certain to understand The Difference Between Prepaid Cards, Debit Cards, and Credit Cards 
I closed an account a few years back because the company cut my credit limit by 70% and went from no annual fee to a $45 annual fee. I promptly said no thanks! I had a zero balance anyway and didn’t need the card.