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Credit Card Blog - Is It Bad To Cancel Multiple Credit Cards At The Same Time?

 Tuesday, 08 May 2007

Why Terminating Many Credit Cards Can Hurt Your Credit

If you have had credit troubles, you may have had trouble obtaining and successfully managing a credit card. So, you often find yourself opening new cards (when you can), and closing out ones that you have tapped out. Well one day you just get tired of the cards you have and decide you are going to eliminate some. Do you really want to close out multiple cards at the same time?

What Should I Do If I Have Multiple Cards?

If you are tired of your cards and want to get rid of some, first thing you need to do is make sure you pay them off as quickly as you can. This should be something you are doing anyways. One way you can show you are financially responsible, which will raise your credit score, is to pay off your credit cards sooner rather than later. This shows that you are stable, and you will not appear to be a risk to the credit card companies. They like it when their customers are not potential problems; it makes them happy. You really should not put yourself in a situation where you have a great quantity of credit cards, but it is understandable where they may happen.

Well Is It Ok To Cancel Multiple Credit Cards At Once?

In a word, no. This should be avoided at all cost. Even if you have paid them off, which is good, canceling cards all at once is not looked upon as a stable thing to do. Remember, credit cards companies love stability. It can hurt your credit score if you keep applying for and canceling credit cards. It shows that you may be a risk at handling the amounts of credit you are allowed. So all that good you have done by paying off your debt, which helps your score, will go away. This unfortunately means that the mess will begin when you apply for many cards.

Tips For Avoiding A Dimemma

  • Don't open multiple cards at once.
  • Avoid store credit cards! They hurt your credit score, and may do more harm than good.
  • Pay off your credit cards as quickly as possible.
  • Manage your finances. You may find that you did not need all those credit cards in the first place.
  • Don't close multiple credit cards at once.

You may think by canceling cards it shows that you have mended your ways, and now you are ready for great financial responsibility. Wrong! Just the opposite is true. The companies look at it as you saying you messed up in the beginning and did not realize what you were getting yourself into. Just avoid it!

Additional Resources:

Trey Knox
Your Credit Network Contributor

Tuesday, 08 May 2007 22:24:07 (GMT Daylight Time, UTC+01:00)  #     
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