At a certain period almost any cardholder comes to the point when he or she wants to close the credit card. Reasons for closing a card can be different. Some people close their accounts because they wish to apply for a credit card with better terms and conditions. They understand that having lots of plastics might damage their credit score and, thus, they get rid of some of them in order to prevent the overspending problems. Others just want to carry fewer plastics in their wallet.

Everybody knows that one's credit history might be damaged when closing a credit card. At the same time having a whole lot of credit cards is not very good for your credit report, which means that you can not apply for more and more new credit card deals. As a result, a credit card user feels kind of caught in a trap.

Although it is not always that good, closing a credit account is not always a bad move. There are some strategies a cardholder can apply when deciding to actually close a card's account. Most cardholders hesitate to close the account just because they have heard somewhere that it might affect their credit history. What is weird is that they don't have a clear idea of how it might actually happen. Those who decided to close the account had better understood what influence it will have on their available credit and their credit history.

Credit that is available is the amount that you can actually borrow on all of your credit cards. It is pretty easy to calculate the sum of money that you owe from your limit. In case you close your credit card, your debt remains the same but your credit limit decreases. Exactly the same thing happens when credit bureaus calculate the credit utilization. So that you know, credit utilization is the ratio of the particular credit limit and the amount of the balance. With every beneficial application for a new excellent credit card both your available credit as well as the credit utilization increases your credit score.

The average age of your credit history is also affected when you close your credit account. This especially is true if you have been using the card for many years.

What are the approaches you can use if you decided to close your credit card account for sure? Try to avoid closing your oldest cards. If the reason for closing your card is just that you want to decrease the number of plastics you have and apply for the new so-enticing credit card offer then it is better to close the card that you have opened most recently. One more point - close plastics with the smallest limit because this will not substantially affect your credit. It is also advisable to combine credit limits.

This very strategy works well if you have got a number of cards of the same bank. Sometimes credit cards won't let you combine, let's say, a consumers credit card into a business one but still most of the time the cardholder is able to negotiate this question with the bank. Moreover, don't forget to ask for a credit limit decrease. Although you will have fewer cards, your credit utilization will remain the same.

By following these basic rules you can secure yourself from not having your credit score lower. With a good credit rating you certainly will be able to apply for the best overall cards!