HOW TO AVOID THE CREDIT CARD TRAP 4

Reduce the number of credit cards that you have. The more credit cards you have, the lower credit score financing institutions give you and, consequently, you are charged higher interest charges & placed under more stringent conditions.

When you finally decide to improve your credit score and cut down on the number of your credit cards, it is not enough to cut up the credit cards you want to discontinue. If you want to benefit fully from the exercise of cutting down on the number of your credit cards, you need to send a letter to the credit card company (with the name you have on your credit card, your address and your account number). You have to include the following details in your letter:

1 request the credit card company to send you a confirmation letter that your account has been closed

2 request the credit card company to notify the appropriate credit bureaus that you have closed your account on your own decision and not on account of a bad credit history (this is important because you don’t want to get a bad record because of your closed account).

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