Today we can do so many things with a just a tap on a phone screen, or click on a computer key, so it is easy to understand why some people imagine that closing credit cards can also deliver instant satisfaction. Isn’t this the easiest way to cut out overspending and improve credit scores? A closer look shows that the picture is more complex. The decision to close a credit card should only be taken so lightly.

1. Don’t Close Old Credit Cards with Good Histories

The offer of a new credit card with a very low interest rate and no annual fees is certainly worth considering. On the surface the card holder has everything to gain from closing the old card and taking out the new card. However, if the old card carries with it a long and positive credit history the loss of this good credit information can eventually reduce this person’s credit score. If they have a very high score they might be able to let this pass, but if it puts them into a poor credit bracket the price could be paid in terms of harder to get and most expensive loans. Is it worth it?