Don’t Cancel That Card!

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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