A disorganized wallet makes it hard to find the things you need, so it’s a good idea to periodically get rid of crumpled business cards and faded receipts. With those things out of the way, you can look at the rest of your wallet’s contents with a more critical eye.
This spring, while you’re dusting off high shelves and ceiling fans, take a moment to freshen up the items in your wallet, too. It’s a relatively quick task that can save you money. Those old credit cards you no longer use may be charging you annual fees. Perhaps you still pay for a membership to a wholesale club, but haven’t shopped there in a long time. (Plus, if you still have some unused gift cards left over from the holidays, you’re sitting on a gold mine.)
Don’t let that overstuffed wallet intimidate you. Here’s how to pare it down.
Clean up your credit
Credit cards are actually pretty germy, so it doesn’t hurt to literally clean them. After you do that, consider if each card still deserves a coveted spot in your wallet.
Evaluate whether a card is still a good fit
Your needs change over time, and your credit cards should keep up. There are lots of reasons you might want to make a switch:
- You’re ready to graduate from a secured credit card to an unsecured card.
- Your travel habits have changed, which affects the type of rewards card you’ll apply for.
- You opened a credit card with a 0% interest promotion to make a major purchase or pay down debt, but you’ve paid off the balance and the no-interest period is over.
- Another credit card is offering a compelling welcome bonus.
- Your spending habits have changed.
- You no longer want to pay an annual fee for a card.
You have a few options if you’re ready to change your card, but think twice before canceling and reaching for the scissors. Keeping an older credit card open and using it sparingly affects the average age of your accounts, which is a factor in your credit scores.
“In my mind, if there’s no annual fee,…
Read the full article here
