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If you have bad credit, some people will tell you that the best credit cards you can have are none at all. If you are drowning in debt with a low credit score this may sound like a good piece of advice. But that is not always the most wise course of action. Particularly for consumers wanting to improve credit scores struggles Remember throwing the cards away will not make the balances or bills go away! Alot of consumers also think that if they cancel the account they will not have to pay the money back. Of course, that is not true at all. You are still obligated to make your payment every month. Canceling the card just means that you cannot use it any more. Nonetheless, it is not factual that canceling every single one of cards is the best thing to do if you are having problems paying. From the point of view of your credit history, it is best to keep some of them. You can even go on using them provided you make sure to pay off what you spend each month as well as making some payment toward reducing the debt that you have on them from before. Chances are you are unsure about which one of your cards you should keep open? The best answer is the cards that have been open the longest. This will be true even if you longest card has a bad payment history, it will look like you are more stable if you stay with lenders instead of jumping around from card to card. That is the action of somebody who is trying to avoid paying their debts, and every lending company knows this to be true. The second best charge cards are going to be the cards that have the smallest borrowing rate. Bear in mind, it is not the minimum monthly payment that is important here, but instead the actual card interest rate. to find your cards interest rate just look on the statement you receive or call them and ask them, so you can easily compare these across all your cards.It might be probable that you will realize that the credit cards you have utilized for the longest amount of time are not the credit cards with the lowest borrowing rates. If you find this to be true what should you do? The fastest and easiest way to get this done is to pick up your phone then contact the firms. Start the conversation by letting them know you are a long term customer. One way to bring this to fore front of the conversation is to ask the operator you are speaking with to check the amount of time you have been with the company. Now is the time to tell the credit card company that you are going to be canceling some of your cards out and are looking to stop the ones with the highest rates. You would like to keep your account with them, since they have provided you with a good service for so long. But tell them that the amount of interest they are charging you is to high and costing you to much money. You can give them all the details here and of course, be truthful. If your lender feels your business is worth keeping then they will lower your interest rate. It wont happen all the time but its free to try. You can then keep those accounts and keep on using them but at a improved rate of interest, while cutting up the newer ones. Using this approach you will be able to keep your best charge cards even while you are reducing your consumer debt and this is going to help with anyone's credit repair efforts.
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