Why You Should Hold On To Older Credit Cards

Credit cards have received a bad reputation in the news media, and with good reason. Many people choose to use them improperly and end up owing thousands of dollars in credit card debt which takes years to pay off. It is actually the people rather than the credit cards which are the problem. Many people who have older cards choose to cut them up after hearing negative things about credit cards in the press.

While this may sound like a good idea at first, there are some things you should consider. While it may sound strange, canceling a credit card you've had for many years could actually damage your credit. You may find that your credit score is lowered after you've canceled your old credit card. The reason for this is because your older credit card gives a lot of information about your purchasing habits and history.

When lenders look at your credit, your payment history and spending limits are very important. An older credit card will give them all of this information. It is also important to consider why you want to cut up an older card. Doing it just because you heard negative information on a television special is not a good reason. If you have a high interest rate, you should be able to get it lowered. If you've had your credit card for a few years, and make your payments on time, the company should be happy to lower your interest rate.

Maybe you've decided that you're bored with the older design and want a new one. In that case, a card with a new design can be sent to you which has the same history as your older card. Another reason why you may want to cancel your card is simply because you rarely use it. If this is the case, you should try to find out if you can get a lower interest rate before making a decision to cancel it. You will also want to have a credit card in case you get into an emergency.

It is important to remember that there is nothing wrong with applying for new cards. Many credit cards today offer features such as cash back rewards, 0% APR, and other things. Before you decide to cancel your old card for one of these, check with the credt card company and find out if there is a way you can update your card without sacrificing points on your credit score.

More reading:

• Which credit card is right for you? - In this section we deal with different peoples needs and give examples of specific types of cards and offers available today.
• Use Your UK Credit Card Or You May Well ‘Lose’ It!
  With each of us in the UK having on average 3 credit cards, it may well be tempting at some point to make your financial affairs easier by just keeping one of the credit cards aside for ‘emergency use’ only.

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