If you have overused your credit card and now have a poor credit rating, you might be tempted to cancel your card altogether so that you are no longer tempted to spend money that you don’t actually have. While this may seem like the right decision to make and it certainly is a responsible train of thought, the fact of the matter is that doing so would only make your situation worse.
This is because whenever you cancel a credit card your credit score ends up dropping. It is seen as a sign of unreliability, a sign that you can’t handle debt repayments. This will result in you having to pay exorbitant interest rates if you ever want to take a loan in the future, and getting a mortgage or car loan is going to become next to impossible. This is clearly counterproductive, you need to improve your credit score so that you are able to recover from this financial rut.
Instead of canceling your card, you should stop using it so irresponsibly. Keep it active, don’t use it even once until you have paid off all of your debts and then use it for small payments that you would be able to easily repay. It would take a while for you to recover, but bit by bit you will start to improve your credit score. The first step is always the hardest, once you start to move back up it will become easier and easier for you to attain an excellent credit score and your problems are going to be a thing of the past!
A great way to use your credit card responsibly is to keep an eye on your credit rating by checking it regularly. Visit official website of CreditCheckTotal360 to do this easily!