Should you close your credit account?

This is a hard one! If you have an old account hanging around and collecting dust, what should you do? Close it can mean a hit on your credit score, and that's not good. But leaving it open can cost you a few dollars a year or worse than theft of your information. And they spend your money comfortably when you are not interested in your credit account.

Take a look at this quick check, to decide if you should close your old account:

This is your oldest account? Does it have low-interest rates or no interest rates?

If you answered "yes" to these, just leave your account! Your old account is important to your credit history. And who knows when you will need to take advantage of low-interest rates. If your card does not charge an annual fee, just leave the card.

If you answered "no" to these questions, then look at it. You will have to call and cancel your card after paying your balance. Cut the cards and go your way. Do not forget to check your credit report for a month or more to ensure that your actions have been accurately reported. If you have paid your balance and started closing your account, that will be reflected. If your closure has been reported simply as "closed" it indicates that you have fled at night without having to repay your creditors. You will need to apply for a change with one of the three credit reporting agencies.

Should you close your credit account?