Knowing When to Keep Or Close Your Credit Card

Loyalty ...

Half of millennials surveyed say they have had their go-to credit card longer than they've had their most current romantic relationship, according to chief industry analyst Matt Schulz with

Loyalty is what most look for in a relationship but when it comes to your credit card, it might not always be in your best financial interest.

The first credit card you opened probably has a higher APR than you should have and not that great of rewards.

Schulz says 17 percent is about the average for new offers. So anything around there is fairly typical. But, if you are in the 20s, you're paying a really high rate.

Don't be afraid to call your credit company.

People would be shocked at how successful people are when they call their credit card company and ask for a reduced interest rate or a fee to be waived.

On average, about two-thirds of people are successful when they call their company.

Experts say, if you can't work things out, it's time to move on?

Don't be afraid to close a card -- just make sure you maintain the same available credit.

"What really impacts your credit score when you're closing a card is something called your utilization rate. Which is how much you owe compared to what your available credit is. So if you have a ten thousand dollar available balance and three thousand dollars in debt, your utilization rate is thirty percent, which is about where people want to be, with the conventional wisdom is [sic]. But if suddenly you only have five thousand dollars in available balance and you still have that three thousand dollar debt, then all of a sudden your utilization is at sixty percent and that's real trouble for your credit score," Schulz explained.


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