There are so many myths surrounding the issue of credit card closing I thought it’d be helpful to dedicate a whole blog post to this topic.
Why should you close a credit card? Well, there are several reasons:
- The credit card is pure junk, such as one of the worst credit cards in America which are listed here: http://abcnews.go.com/blogs/business/2012/10/6-worst-credit-cards/ – No questions about this.
- The credit card carries an unsustainable annual fee, such as most loyalty and transferable points cards (if you’re not familiar with reward credit cards, check this post out). Many cards of these types waive the first year’s annual fee, and many consumers don’t find them worth keeping beyond the first year. Continue reading Closing a credit card: let’s get the facts straight
As I have explained in previous posts, credit cards have a large variety of benefits over debit cards and other methods of payments, such as credit profile building, warranty extension, delayed payment, and emergency fund. Apart from APR’s, credit cards are more or less the same with respect to most benefits. And of course, you should never carry a balance because a low credit card APR is still a ridiculously high interest rate. How, then, do you decide what credit cards to obtain?
Well, how about rewards, the most prominent feature of credit cards that are advertised these days on TV and newspapers, as well as brick-and-mortar banking locations? 1% cash back on every purchase. 5 points per dollar spent on honey. 2 miles per dollar spent on US Airways flights. I’m sure you’re familiar with these commercials already. What’s confusing about these reward systems is that they use different types of currencies which are sometimes hard to evaluate. I will attempt to decipher the most common credit card currency types for you below. Continue reading Credit card rewards: when miles, points, and cashback are not created equal