Canceling a credit card can seem like a fast and easy solution to your debt woes. In a Bankrate survey of 2,301 adults with credit cards, 61% reported that they’ve canceled at least one credit card, and 37% said they’ve canceled more.
The older you are, the more likely you’ve done it: 72% percent of Baby Boomers have canceled at least one card, more than 61% of Gen Xers and 50% of Millennials have done it.
Here are some reasons they gave for cutting ties:
40% - No longer needed it after paying off debt
36% - Didn’t use it enough to keep it
36% - Interest rate too high
18% - Worries about overspending and debt
17% - Insufficient rewards
12% - Improve credit score
11% - Other reasons
However, canceling a credit card doesn’t automatically boost your credit score. Experts advise keeping an account open, even if you don’t use it, because longstanding accounts with available credit typically have a positive impact on your overall credit score.
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