Getting Rid Of Those Extra Credit Cards
Think about all the times you’ve opened your mail and found solicitations for new credit cards. If you’ve kept them all, you would probably need a whole separate file folder. That’s fine if we opened a new credit line every so often to help pay for those extra “special” expenditures such as a new bike or a new barbeeque. What happens, though, when you start opening up more than a “few” credit lines from a variety of sources? Your FICO score goes lower. Before you realize it, you start receiving monthly bills from all those purchases that you suddenly find yourself making, and you don’t know how to stop! Our tips to help you get rid of those extra credit cards will make your life that much easier.
Limit yourself to the number of credit cards you own
Try to stick to using one or two credit cards; otherwise, it’s too tempting to spend more until you reach each card’s limit. Let’s say your credit card has a limit of $10,000. That $10,000 figure can act as a deterrence or “limit” to your spending, but if you own three or four cards, that means your overall limit is $40,000 – a scary figure, and hardly a deterrent. Instead, if you really need a limit increase, just call up the credit card company and apply for additional credit. If your credit history is decent, then you’ll probably have no problem increasing your limit.
Another good rule of thumb is to use one credit card for all purchases except for gas, and then a second one strictly for those purchases. That way you can keep tabs on your transportation expenses separately from all other purchases. It also helps in case your job reimburses you for car expenses.
Consolidate your credit
If you happen to own more than two or three cards, see if you can consolidate your dept onto one of the credit cards. Credit card companies often advertise special consolidation interest rates, where you don’t have to pay interest on a transferred amount for up to six to nine months. After that time, you’ll usually pay the same rate as you’re paying on your existing balance. It’s a great way to reduce your overall interest payments on your credit cards, and at the same time it reduces the number of cards that you own.
