While all credit cards are tagged as debt baits, there are certain cards that you should think twice about canceling. If you really want to get out of your credit card debts fast, the best way to do it is to aggressively pay your outstanding balance. When all your dues are clean and are well-taken cared of, sit back and consider which credit cards you should cancel and which ones you should keep.
Keep the credit card that has the lowest interest rate. No two credit cards are the same. One will always charge higher than the other. To find out which is which, check your monthly billing statements. Do the math. Once you find out which card doesn’t go overboard with charges and interests, you’ve found the card that should stay.
If both of your cards bestow the same interest rate, try to settle for the card that you have better history with. By that, it means that you don’t have any late or missed payments with them. Settle for the card that you have never maximized the credit limit at all.
It also pays to keep the credit card issued by your bank. Some banks give credit cards to their loyal savings or checking account holders. Keeping your bank’s credit card would give you convenience in terms applying for a loan or doing any other transactions with them as they have your information handy.
When choosing which card to keep, you have to know your reasons why you’re doing so. Some people keep a credit card so that they can boost their purchasing power. If this is the case, then it is best that you consider keeping the credit card with the higher credit limit. If you merely want the card for the sake of keeping your credit score high, then the one with the lower credit limit is ideal, as you won’t be tempted to use it for high ticket items.
Canceling credit cards is not the way to get out of debts. Keep one or two of your cards even if you are not going to use them as frequently. This way, you will have available credit in case of emergencies. And it would be much easier for you to avail of loans and mortgages in the future because your credit card shows you as a good payer.