 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: How to Close a Credit Card the Right Way\n----------------------------------------\nIf you've decided that canceling a credit card is the right move for you, take these steps first.\n*   **Redeem rewards.** Closing an old rewards card might cause you to forfeit any reward points you might have already accrued, so use your points before you lose them. Depending on the card's terms, you may be able to redeem them as cash back or gift cards. Some cards also give you a 30- or 60-day grace period to use your points after closing the account. Check the details of the specific card and rewards program to confirm the issuer's policy.\n*   **Pay off any balances.** You'll be responsible for any outstanding credit card balances whether or not you pay them off before closing the account. In other words, canceling a credit card won't make that debt disappear. If you're not sure you can afford to pay off the balance in one lump sum, consider moving it to a balance transfer credit card (be warned you'll typically pay a fee to do so). That can give you more time to get rid of the balance, and could even mean paying zero interest for a number of months, though you'll now have another credit account to manage.\n*   **Inform any authorized users on the account.** When you close a credit account with an authorized user on it, that person's score could be affected. If they have no other accounts, for instance, losing your account's history would leave them with no credit history (until they open a new account of their own, and even then, it will take about six months to produce a new score). That's not a reason to avoid closing your account if it's the right choice for you. Let your authorized user know what to expect, and give them a heads-up if possible so they can take steps to strengthen their score by other means. You may even choose to add them as an authorized user on another one of your accounts. END