Canceling a credit card

 You’d think canceling a credit card would be no big deal, right? However, when you close an account in good standing, you’ll not only reduce your overall credit limit, which could wind up hurting your credit score, but you’ll eventually lose the history associated with that account. That’s because your payment history and the age of your credit are two of the most important factors that make up your overall credit score. And we all know the higher your credit score the better your rates will be on various insurance, rent and mortgage payments. But there are times you need to cancel a credit card like when you get a divorce. Begin by making sure that you don’t have any outstanding debt on the account; if you do, then you’ll need to pay that off. You can cancel your card over the phone or online. Keep an eye on your credit reports so you can confirm the account has been closed. You’ll also want to check your credit scores to see how canceling the account has affected your credit. Make sure everything looks accurate, and don’t be afraid to file a dispute if anything appears incorrect. Questions call 855-22money or go to yoursafemoneyshow.com.