Back to: December 2019


How to Cancel a Credit Card Without Hurting Your Credit Score
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The decision to cancel a credit card may be based on the desire to avoid excessive spending or if the terms of the card, such as annual fees or a high-interest rate, are no longer attractive.


While credit cards aren’t evil, they can be very dangerous. You need to be careful with the way you wield credit. If you’re not careful, you could do some real damage to your credit standing.

Be aware that cancelling a credit card may actually hurt your credit score. Part of your score is based on how much of your available credit you actually use; this is your credit utilization ratio. When you close a card, this ratio jumps because you’re using more of your valuable credit. And when this ratio jumps, your credit score goes down. (Also note that the longer you’ve had an account, the more you’ll affect your credit score by closing it.)

On the other hand, Too many open lines of credit can damage your account as well, which is why you should open new credit card accounts judiciously. Getting a 10% discount on your first purchase is probably no longer a good enough reason to open a new line of credit. Once you have at least one major credit card, you're not necessarily better off by opening a handful of store credit cards.

Cancelling a credit card is easy, but if you do it, do it right.

  • Close just one account at a time, even if you’re closing several. First, cancel cards that charge you fees. Also, it’s better to cancel new cards before old ones. And you may want to keep cards with good rewards programs.
  • Before you close an account, pay off your balance or transfer it elsewhere. If you try to cancel a card while it still has a balance on it, you might end up paying nasty fees and high-interest rates.
  • Contact your credit card company. You can cancel some accounts online, which is convenient because often when you try to cancel by phone, the sales rep will do his best to talk you into staying. If this happens, be firm.
  • Send written confirmation. Follow up by writing a letter to the card issuer.
  • Watch your credit report. It may take several weeks for changes to appear on your credit report. It’s your responsibility to be sure the report is accurate, so keep tabs on it. You may also want to watch your credit score to see if cancelling the card did any damage.
  • When you’re certain the account is closed, cut up your card.

There are many compelling arguments for closing credit card accounts. Doing so keeps you from abusing credit, reduces the risk of identity theft, and makes bookkeeping easier. Whether these factors outweigh the potential damage to your credit score is a call only you can make. The important thing is managing finances responsibly.

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With Compliments of

Michele Vyge-Fraser
Real Estate Agent/ Associate Broker/ CNE®


Red Door Realty
1314 Martello Road
Chapter House
Halifax, Nova Scotia,
T: 902-830-6397
NovaScotiaRealEstate@gmail.com
www.RedDoorRealty.ca

Hello!

Thank you for taking the time to open my newsletter. I hope you are finding the articles and links useful, relevant and interesting. As always, thank you for your support and for your business!

The question on most people's minds seems to be 'what will happen to our prices this year?' While some of the out of province larger markets are more subject to price fluctuations, we are fortunate that our local Halifax market still seems to be staying the course of steady progressive growth. Last year, 2019, our market tipped over to a sellers market with prices increasing almost across the board, especially for well maintained properties. 2020 is forecasted to be a continuation of the same. So is this the right time to buy or sell? Since real estate markets are cyclical, each year offers different levels of buying and selling opportunities so, in my opinion, it very much depends on your next 5-7 year goals.

Please contact me anytime to discuss your property's current market value, your possible buying or selling plans or to request a timely general market overview. In the meantime I have included a snapshot of our HRM 2019 solds by 'season' below to help you track and compare the market as we move forward into 2020.

Looking forward to hearing from you!

Best Regards, Michele    


2019 Halifax Regional Municipal MLS® Solds by Season 

January to March

  • 1144 Sold MLS® Listings

April to June

  • 2639 Sold MLS® Listings

July to September

  • 1538 Sold MLS® Listings

October to December

  • 718 Sold MLS® Listings



NATIONAL MORTGAGE RATES
Term Posted
Rates*
Best
Rates*
6 Months 3.34% 3.30%
1 Year 3.59% 3.04%
2 Years 3.74% 2.89%
3 Years 3.89% 2.79%
4 Years 3.95% 2.95%
5 Years 5.34% 2.69%
7 Years 5.80% 2.99%
10 Years 6.10% 3.04%
Variable Rate 2.90%
Prime Rate ** 3.95%
*last updated: Jan 13,2020


www.RedDoorRealty.ca

Halifax Mortgage Specialist Bruce Lusby 

(902) 210-0515

http://mortgageweb.ca/BruceLusby

Halifax, Nova Scotia - updated Oct 6, 2015

Variable:

5yr @ Prime - .65% (2.05%)

HELOC @ Prime +.25% (2.95%)

Fixed:
1yr 2.29%
2yr 2.09%
3yr 2.24%
4yr 2.54%
5yr 2.54%
6yr 3.39%
7yr 3.44%
10yr 3.84%

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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.