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credit card annual fee

Q&A: Closing accounts won’t help your credit scores

April 8, 2024 By Liz Weston

Dear Liz: I have an 834 credit score, with three credit cards. I don’t carry debt or pay annual fees. I’m considering closing one of my cards and replacing it with one available through my credit union. Is it worth the hassle?

Answer: Closing accounts won’t help your credit scores and may hurt them. If there’s no compelling reason to close a card, you might consider leaving the account open and using the card occasionally to prevent the issuer from closing it.

You also might want to rethink your stance on annual fees. These days, few cards without annual fees offer rewards, while many cards offer rewards that more than offset their fees. If you’re new to the rewards card world, consider getting a simple cash-back card. If you’re interested in travel benefits, look for a card that gives you points that you can transfer to frequent traveler programs.

If you’re determined to close the account and open another, apply for the new card first since the closure may drop your scores.

Filed Under: Credit Cards, Credit Scoring, Q&A Tagged With: annual fees, credit card annual fee, credit card rewards, Credit Cards, Credit Score, Credit Scores, credit scoring, debt, rewards cards

Wednesday’s need-to-know money news

September 29, 2021 By Liz Weston

Today’s top story: What Mastercard’s new Buy Now, Pay Later feature means for cardholders. Also in the news: How to find out if a destination is safe for travel, how the pandemic has changed the financial advice business, and how to get your credit card’s annual fee refunded.

What Mastercard’s New ‘Buy Now, Pay Later’ Feature Means for Cardholders
Mastercard Installments will partner with a handful of card issuers to offer payment plans you can opt in to wherever Mastercard is accepted.

How to Find Out if a Destination Is Safe for Travel
You can use all sorts of online resources, as well as word of mouth, to find out how safe your destination is.

How the pandemic has changed the financial advice business
It’s a different ballgame.

Is Your Credit Card Annual Fee Refundable?
The answer may surprise you.

Filed Under: Liz's Blog Tagged With: buy now pay later, credit card annual fee, financial advice, MasterCard, pandemic, refund, travel safety

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