Pick a card, any card. Do you have multiple department store or gas cards that you never use? Do you pay annual fees for cards that never see the light of day? Then perhaps it's time for a little house (or wallet) cleaning.
Pay. If you have numerous credit card balances, tackle the one with the highest interest rate first and pay the minimum amount required on all your other balances. When that one is paid off, roll that amount into the next highest credit card balance (old amount plus the minimum balance required).
Transfer. Consider transferring your higher rate credit card balances and loans to a card with a lower rate. Also, research Visa® Balance Transfer specials which can offer a very low rate for a specific amount of time.
Choose. Figure out which card you've had for the longest amount of time. Make sure to keep this card open, since lenders often see borrowers with short credit histories to be riskier than those with long credit histories. Determine one or two cards to utilize regularly and leave the rest at home. If you have a card that has a low interest rate or offers rewards, it may be best to keep it open. It’s alright to close those credit cards that you’re no longer using, if they don’t have balances and you have other cards.
Follow up. If you choose to close a credit card, make sure to send a letter to the issuer sharing your decision. Double check your credit report to see if the card is reported as "closed."
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Where others see dollars and cents, we see people and passions. And we offer a full suite of financial tools and services that help our members do more with their money.
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