canceling credit cards
I have too many credit cards and I have a handful of cards that I want to cancel. These cards have a balance.
I know my credit score will take a hit.
Since I will be making the minimum payments on the closed cards until the balances are paid in full.
Will my credit score improve over time? Typically, how long?
Terry Says
Nope. That’s not how the process works. You have to completely pay down the balance BEFORE you close the card.
You should take the highest rate card, and pay double the current monthly minimum ever month. The same payment every month — double the CURRENT minimum — so write that amount down. The balance will be paid off in less than 3 years — vs maybe 30 years paying only the new minimum every month!
Take the card out of your wallet, and don’t charge another penny. Do that with every card, one after the other. Only when teh balance is paid off can you close the card!
If you just realized that is impossible, contact the National Foundation for Credit Counseling at 800-388-2227 — Their non-profit member agencies will give you good, trusted advice.
