If you are using multiple credit cards and are finding it difficult to manage the credit burden, you can close your youngest or latest credit card account. This will help in consolidating your credit and you can have better control over your credit card dues with fewer accounts. Here is how closing your youngest credit card can benefit you:
- Improved Credit Score – Closing the latest credit card account can help in improving the credit score as credit issuers will get an indication that you can manage your credit well.
- Debt Consolidation – By closing some of your unused and latest credit card accounts, you can begin consolidating your debt and have better control over debt repayments. This, in turn, can improve your credit score over time.
- Lower Credit Bills – With fewer credit card accounts, you will have lesser credit at your disposal, thereby restricting your credit purchases. This lowers your monthly credit card bill burden.
- Good Credit History – Closing the latest credit card account will also have a positive impact on your credit history in the long run.
Before closing any credit card account, it is important to know its age. Closing a long-standing credit card account could mean that you are unable to afford the credit card repayments and credit issuers may be unwilling to grant fresh credit. It can also have a negative impact on your credit score. Therefore, opt for the closure of the youngest credit card account instead of an old one.