When you have decided to change credit card companies, be sure to notify the company of your intention to cancel. Otherwise it may look like you have a lot of credit available to you and you may not get new credit if you seek it in the future. A credit report will list all your cards and your full credit line, whether you actually use them or not.

Even if you have a spotless record, a lender may reject you because you could borrow into oblivion. Just cutting up old cards with the scissors will not suffice. You need to write or call the issuer of the card, ask them to cancel your account and then ask them to notify the credit bureaus that your account has been in good standing and closed by the borrower. If you want advice or need special help, there are numerous nonprofit consumer credit counseling services available. Check the telephone book for local chapters, or go on-line to become more familiar with local services.

Your thoughts on this subject? Your comments appreciated!

Content © Rich Brott, 2011

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