3 things to do before canceling a credit card

One way many consumers try to control their spending is by canceling one or more credit cards. They see this as a way of removing temptation, which it can be, but it also removes the safety net that having credit brings. Being able to put emergency vehicle repairs or medical bills on a credit card can be a lifesaver.

Here are some tips consumers may want to keep in mind before they cancel.

1. Talk to the Card Company
   Consumers who are canceling a card because of the high interest rate or an annual fee may be able to negotiate with the card company. Those with good credit can usually get their rate reduced, and card companies will often find ways of enticing customers to stay if they mention switching to another credit card.
2. Use All Available Reward Points
   Reward points may expire if the card is canceled, so consumers should make certain they have used up all the points they can before they cancel the card. Often, they can convert their points into a credit towards their next payment.
3. Pay Off the Card
   If possible, consumers should pay off the entire balance, otherwise they will still have to make payments even though the card is canceled. Paying the card off will also help their credit score.

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