Make Canceling your Credit Card Account the Last Resort

As many cardholders have had their interest rates changed above thirty percent, many of them have decided to stop paying on their account or opt out which essentially closes the account. While this seems like best thing to do at the moment, one must remember that opting out or closing an account has the potential to hurt more than help. This is according to a question and answer session on Bankrate.com entitled "Lose the High Rate, Not the Credit Card".

In this session the question is from a woman who is like many other cardholders today who are completely feed up with their credit card issuers. Like so many others she has tried unsuccessfully to reduce her interest rate, is willing to pay what she owes, but is tempted to just walk from both the card and the issuer who is unwilling to budge.

As for the answer of walking away for the card, the author gives great options that could not only save her money, but also saves her from financial headaches down the road that could occur from non-payments. He lets readers know that when you simply stop paying on your account your credit ranking takes a hit which could have you paying more for other things in the future. Also he lets it be known that because of the "universal default clause" that is associated with nearly all credit card accounts, other card issuers could raise the interest rate on their cards because they have reason to fear that your risk level has increased. Instead of just "sticking it to the bank" he suggests looking for a balance transfer credit card that has a lower rate, and no hidden fees. He also suggest that if the balance being transferred is above 50 percent of the credit limit of the new card to look into getting two cards so your credit rating would be affected negatively.