I have two credit cards. I need to cancel one. Which one should I cancel, REWARDS 660 OR CONTINENTAL FINANCE??
April20
I have bad credit, and need to pick between two different cards, The Rewards 660 and the Contienental finance, I have both of these cards, and need to cancel one, which one is better to have the rewards visa, or contienental finance master card?
I have bad credit so I can’t get a better credit card. The reason I want to cancel is very high annual fees, and monthly fees.
I guess my first question is *WHY* do you think you need to cancel one of them?
Keep the one with the lower interest rate
Any kind of rewards are small in comparison to the interest rate.
Compare the two cards, if you keep a debt on it, then go with the one with the lower interest rate. If one or either charge an annual fee, consider that also.
In order to keep your debt ratio down, you may want to keep both accounts open and just not use them. If you absolutely must close one of them (and I’m not sure why you would need to) I would keep the older one. The most important thing is to keep your account(s) in good standing, and closing them can negatively affect your FICO. I say pay the debt down, the best you can (with a balance transfer if you have to), keep the accounts open, cut up the cards/stop using them, and keep a close eye on your credit report to make sure no one else is using them either.
All these comments sound good. However, I would most definately make sure that if you’re closing one of these accounts, that you have a main-stream bank credit card already established. In other words, I would actually close both of these accounts and substitute for accounts in one or two of the big banks like Chase, B of A, US Bank, Wells, etc. They have a slightly higher impact in your credit score, but keep in mind that the length of time that you’re accounts are open is more important than the name of the bank. So if you have over one year with these accounts, I’d probably just pay them down, use them seldomly, but keep the balance less than 30% of your limit so that your FICO score is the highest it can. Always have a balance of at least one dollar ($1.00) so that you get points for using your credit. Also, don’t have too many credit cards, 2 or 3 is fine.
Aside from the rewards, the best one to keep is the one that offers the lowest interest rates (especially if one is significantly lower than the other.). Few if any rewards will ever compare to a lower interest rate. Also you might want to consider which one you have the highest available credit on. GOOD LUCK