Fact vs. Fiction Archive

If I'm not happy with the new terms of a credit card, I should close it as soon as possible.

Your first instinct may be to terminate the agreement, but be careful about hastily closing accounts. This can lower your credit score, especially if you close older accounts with lengthy credit histories. Rather than cancel an account, use the card for small purchases and pay off the balance quickly. This will maintain your credit score and keep the card company from closing your account for nonuse. In some instances, you may be able to negotiate better terms. Check with your bank to find out.

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