How do I cancel a Total Visa credit card?

Six or more credit card accounts might be too many for some people, given that the average American has a total of five credit cards. Everyone should have at least one credit card for credit-building purposes, even if they don’t use it to make purchases, but the exact number of cards you should have… read full answer differs by person. It depends on how well you can manage one credit card, then two, and so on.

If you’re not sure how many credit cards is too many for you, there are a number of factors you can think about when making your decision. In particular, consider your recent spending and payment history. If you’re having trouble paying the full statement balance by the due date on each account you already have open, think twice about applying for another credit card account.

How to Determine How Many Credit Cards Is Too Many For You

1. Look at your credit report and score.

   If you have a history of financial mistakes, such as missed payments, you probably don’t want to get more than one card until you prove yourself to be a responsible borrower. Besides, it may be hard to get more than one worthwhile cards with damaged credit, anyway.

2. Review your utilization and payment history.

   If you’re maxing out all the cards you have, credit card companies probably won’t want to give you more spending power. Plus, credit card debt can be very expensive, and you don’t want to rack up balances that exceed what you can repay comfortably.

3. Consider credit card company rules.

   Some issuers have unofficial rules regarding how many credit cards is too many for an applicant to have. For example, there are lots of rumors floating around that Chase will deny a credit card application if you’ve already opened five accounts (from any issuers) in the past 24 months. Such restrictions could limit your options for opening a new account, or just serve as a sign that you might want to slow down the pace of your applications.

4. Determine how well you’re keeping track of your credit cards.

   Even if your credit is good and you’ve never forgotten to pay a bill, that doesn’t mean you never will. Having too many open accounts to keep track of can lead to forgotten due dates, interest charges from simply forgetting to pay a credit card in full, and other issues. If you have trouble listing your credit cards from memory, you’re likely to forget to pay one at some point.

There are benefits to having more than one credit card account. Having several credit cards can help you save money by allowing you to get the best collection of rates and rewards for your biggest transactions. For example, you could get a flat-rate cash back credit card for everyday expenses, a bonus rewards card for travel, and a balance transfer card to reduce the cost of existing debt. Having multiple cards can also help your credit score if you keep your credit utilization low and your payments on time.

What you should watch out for is applying for too many credit cards too quickly. It’s best to not apply for more than one or two per year, as each application puts a hard inquiry on your credit report and temporarily hurts your credit score.

The more data that’s at your disposal, the easier it will be to decide how many credit cards you should have. WalletHub can help with free daily credit score updates and personalized credit-improvement advice.

It is better to keep unused credit cards open than to cancel them because even unused credit cards with a $0 balance will still report positive information to the credit bureaus each month. It is especially worthwhile to keep an unused credit card open when the account does not have an annual fee.… read full answer

Still, there are times when it may be beneficial to close your credit cards, such as to avoid expensive annual fees. And if you’re worried about your credit score, you can use WalletHub’s free credit score simulator to see the potential impact closing a credit card will have

Why It Is Better to Keep Unused Credit Cards

Just keeping unused credit cards open helps your credit by maintaining the total amount of credit you have available and preserving the length of your credit history. If you don’t use a credit card, your account will still get reported to the credit bureaus as being in good standing every month, assuming you have a $0 balance. This will continue to add positive information to your credit reports, helping your credit score.

On the other hand, when you close a credit card, especially if it’s one of your oldest credit accounts or one that has a high credit limit, your credit score will likely suffer a bit.

When It Is Better to Cancel Credit Cards

Despite the potential for credit score damage, it’s important to remember that there are a few situations when it might be better to close unused credit cards rather than leave them open. If your unused credit card charges an annual fee, for example, and you don’t need your credit score in its best shape for a while, it’s probably best to save the annual fee and close the account.

On the other hand, if you want to cancel your credit card because you are concerned about overspending, try locking it away in a safe place first. If that doesn’t work, it will likely work out better for you and your financial future to close the credit card account, even if your credit score takes a hit.

You should use your credit card at least once every three months to keep it active (but more often than that if you want your credit score to improve at a faster rate). Not all issuers are the same when it comes to credit card inactivity. Some might never close an inactive card, while others might do it after only a few months. But there aren’t any major credit card companies that state they’ll close your account before it’s been inactive for three months.… read full answer

Here’s how often you should use your credit card to keep it active:

• Amex: No disclosed time limit but will sometimes close based on inactivity. They’ll notify you first and give you a chance to use your card to prevent it, though.
• Barclays: Will close accounts after 6 months of inactivity. They will notify you 2 months in advance and will give you a chance to use your card.
• Capital One: Will close as soon after 12 months of inactivity. They will notify you beforehand and give you a chance to use your card.
• Chase: Will close after 6 months of inactivity. They will send you a letter inviting you to use your card to prevent it from being closed.
• Citi: Will close accounts after 15 months of inactivity. They may notify you beforehand.
• U.S. Bank: Will close account after 18 months of inactivity. May notify you beforehand.
• Wells Fargo: No disclosed time limit but will sometimes close based on inactivity. They will always send a letter ahead of time notifying the cardholder and giving them an opportunity to become active and avoid the closure.
• Bank of America: Will close accounts after 24 months of inactivity. They will send you a letter inviting you to use your card to prevent it from being closed.

Keep in mind that “activity” could be as little as making a $1 purchase. Making a payment or a balance transfer usually counts too, depending on the issuer. And issuers will often contact you if they’re planning to close your account based on inactivity, in order to give you a chance to keep your card by using it. Just make a small charge and you should be all set.

As long as you can afford to, though, you really should use your credit card every month. It’s not a bad thing to have zero balance, but your credit score won’t improve as quickly as it would if you make charges and pay them off. Don’t feel forced to spend, but consider charging at least one small thing.