If you’re considering canceling your travel credit card, it’s important to carefully consider the potential consequences before making a decision. There are a number of factors to consider, including fees, outstanding balances, the impact on your credit score, and any rewards or benefits you may lose by canceling the card. Asking yourself the following questions can help you make an informed decision about whether canceling your travel credit card is the right choice for you.
Here are some questions to consider when deciding whether to cancel your travel credit card:
1. What are the fees associated with cancelling the card?
Some credit cards charge a fee for closing the account, so it’s important to consider whether the cost of cancelling the card outweighs any potential benefits.
2. Do you have any outstanding balances on the card?
If you have a balance on the card, you may want to consider paying it off before cancelling the account. This will help you avoid any late fees or interest charges.
3. Will cancelling the card affect your credit score?
Closing a credit card account can potentially impact your credit score, particularly if the card has a long credit history or a high credit limit. It’s important to consider how cancelling the card might affect your credit score before making a decision.
4. Do you have any rewards or benefits that you will lose by cancelling the card?
Travel credit cards often come with a variety of rewards and benefits, such as miles or points that can be redeemed for travel, hotel stays, or other perks. If you have a significant amount of rewards or benefits that you will lose by cancelling the card, it might make sense to keep the account open.
5. Can you transfer your rewards or benefits to another account?
If you have a significant amount of rewards or benefits that you don’t want to lose, you may be able to transfer them to another account, such as a different credit card or a loyalty program. This can help you retain the value of your rewards without keeping the card open.
6. Do you have any upcoming travel plans that will be affected by cancelling the card?
If you have a trip planned in the near future that you booked using rewards or benefits from the travel credit card, you may want to consider keeping the card open until after the trip. This will ensure that you have access to any benefits or perks that you might need while traveling.
Bottom line:
Before cancelling your travel credit card, it’s important to consider several factors. First, consider whether you are still using the card and whether you are earning valuable rewards or benefits from it. If you are not using the card or not benefiting from it, then cancelling it may make sense. However, if you are still using the card and earning rewards or benefits, you may want to consider keeping it open, especially if the card has an annual fee. It’s also a good idea to check if you have any outstanding balances on the card, as cancelling a card with a balance could negatively impact your credit score.
Additionally, consider whether you have any travel credits or perks that are set to expire soon, as these may be lost if you cancel the card. Finally, consider whether you have any alternative cards that offer similar rewards or benefits, as cancelling your current card may mean losing access to those rewards or benefits.