There is more to it than Simple Closure

Professional advice has always warned against closing existing credit accounts. Your credit score is made up of a number of elements one of which is your existing debt relative to the credit that you still have available. You should ideally never exceed 30% of debt against your total available credit. If you zero an account then close it you will be reducing your available credit and therefore potentially harm your score.

You should certainly get rid of expensive credit card balances and can do that with a far more competitive personal loans. Modern online lenders provide a simple and speedy loan vice with approvals dependent far more on affordability rather than the previous history of the applicant.  Decisions are usually fairly immediate with correct applications and the money transferred automatically within the next working day. You will not face another interest rate charge on your card.

The question is whether you should retain the card. As long as you are self-disciplined in the future and only use the card for convenience then why not? You should be certain you can pay off your month’s spending in full at the end of the accounting period in order to avoid interest being applied.

The Scissors

There are occasions when taking scissors to you card makes sense:

  • Self-discipline can be a problem. You may be tempted by some special offer or the latest gadget. How strong is the will power? If you close an account then you cannot spend anything on it. Credit scores do judge accounts of some age higher than new ones and overall 15% of your credit score is made up of the length of your credit history. That is not affected if you close an account and removal of temptation may be worth the slight setback to your short term score. Your good history relating to the card will not disappear until the seven year limit removes it anyway.
  • If your card has a particularly high rate of interest or stringent terms and conditions it may well be worth closing it and getting a more competitive card. That will mean you retain your debt/available credit ratio. If you can negotiate the waiver of fees then by all means keep the card.
  • If your card is ever used fraudulently it makes sense to close the account. If it has been used once it may be vulnerable for unauthorized used again even though the first transaction was identified.
  • If the card is a joint account and you are splitting up it is obvious that the account should be closed.
  • At times a card is useful because of the rewards and promotions that have been a regular feature. If they no longer apply then it may not make sense to keep the card, especially if another card provides what you now need.
  • Where you have resolved never to seek credit again then more than a single card for convenience makes little sense. Your mortgage may already be in place so why have multiple cards when you are handing your payments well? That should ensure your credit score is fairly good.

If you get the scissors out then it is worth taking a couple of other steps at the same time:

  • You must keep your debt levels low. If your debt ration changes and harms your credit score if you reduce your debt you can restore your score without taking on a new card.
  • Where you have a choice of which card to close, close the newest one unless its terms and conditions are clearly better than an older card.

Ultimately anything older than seven years disappears from your credit history but by the time that happens with the positive entries on an account you have closed you can take  other prudent steps to improve your credit score elsewhere. That not only means reducing your overall debt but continuing to pay all your bills on time from personal loans to regular monthly commitments like utility bills or insurance payments.

If your financial management skills improve you need not worry too much about closing any account because you will find that your credit score will start to reflect your better performance when it comes to your financial affairs.

Entrepreneurs Talk About the Jetsetting Side of their Businesses



As global markets emerge and companies expand, more and more entrepreneurs conduct business at an international level. For some, jumping on a plane to a foreign country is simply a job perk but for others their career is wholly dependent on traveling.

Air Charter Service recently reached out to three traveling entrepreneurs to get some insider insights into the experiences that come with a location-independent career. There are three inspiring lessons on business travel to be learned from the interview.

Quitting one’s day job for a travel-related career isn’t always a bad move

While switching from a stable desk job …

Continue reading...

Improve Your Credit Score Now

It is so easy to rack up the credit cards during the summer while you’re out on the restaurant patio enjoying a craft beer or gear food.  It can be easy to be careless during the summer when money does not seem as real when using a card, and you feel you can pick up the tab on dinner or shots.  Just because it is summer does not mean you should go on a spending spree.  With a little discipline you can get your credit score on track now.

Review Your Credit Report

You may just assume that your report …

Continue reading...

Three Money Mistakes Made by Millenials

Each generation wants to be more successful than the last, whether that is making more money, having enough to retire, or a home to be proud of, but it does not see like we are headed in that direction.  Whether you are just entering the workforce now, need to make adjustments to your spending habits, or looking for advice to pass down to your children, it is never too early to prepare for your financial future.  By avoiding some of the worst money mistakes you can make, you will be setting yourself above most, as I wish that I …

Continue reading...

Increasing Your Job Satisfaction as an Educational Professional


You’re fresh-faced after enjoying a well-earned summer break, and ready to start the teaching year with a bang. But with the general consensus over teacher’s working lives being resoundingly negative, maintaining that positive attitude over the coming months could be a struggle.

In March the Guardian published the results of their teacher survey, and it wasn’t a pretty picture.

With 60-hour weeks being common practise, an unhealthy work-life balance was one of the biggest complaints. Concerns over undue pressure on head teachers and increasing workloads are also damaging career progression.

The most concerning result was the record number of respondents …

Continue reading...

Four Items Americans Overspend on the Most

If there is ever chatter about how Americans are racking up the credit card debt or not having much in savings, it is probably true, as they love to spend.  There are four areas that get extra spending attention that could probably be scaled back a bit.


The cost of weddings continue to rise to give, whether it is having a little extra money to spend as the economy has recovered, or that a huge dream wedding is in order, Americans are spending over an average of $26,000 for one night of bliss.  Those brides must be watching “Say …

Continue reading...

Five Easy Habits to Pick Up to Curb Monthly Spending

Having a budget is a sure way of holding yourself accountable for monthly spending, but if you need a little extra boost, here are five easy ways you can start changing spending right now.

Put Away the Credit Cards

Sure it is easier said than done, but you cannot get ahead and start saving until the charging spree is over.  Keep the credit cards in your wallet or purse and do not use.   It should be kept on you for emergencies, so put all other cards in a safe play at home, away from sight so they will not …

Continue reading...

A Good Financial Check-Up Can Save You Thousands

This is a guest post from Pauline of

I know so many people who consider themselves frugal, because they don’t spend a lot of money on daily items, such as food or leisure. While that is great, I often notice that these same people just leave their money sitting there on their savings accounts, earning them less than 1% per annum, instead of investing. Now, that’s plain depressing. You work so hard to save a few dollars here and there, and you don’t put the work to grow your savings!

The first thing that shocks me about these …

Continue reading...

Five Ways You Could be Hurting Your Credit Score

Having a great credit score is the best way to take advantage of the lowest rates and purchasing benefits that are out there so if your credit score is not in good shape it could be costing you hundreds of dollars each month in interest.  We know that late payments are a huge factor, but take a look at a few other ways your credit score could be negatively affected.

Balance is Too High

A large factor of your credit score is the debt balance compared to the available credit, so the smaller that window is, the more your score …

Continue reading...

Five Items that We Pay for but Do Not Need

One of the best ways to take control of your finances is to remove unnecessary spending, and what better way to take it a step further on items you think could not be a big deal but should be tweaked.  Take a look at five items that we spend money on that could easily be avoided.

Bottled Water

We already pay for water (or if you live in the city of Detroit and you do not pay, you still get for free without a shut off, but that is a separate issue), so why double pay just to get …

Continue reading...